Bill Text: FL S0618 | 2019 | Regular Session | Introduced
Bill Title: Tax on Commercial Real Property
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-05-03 - Died in Commerce and Tourism [S0618 Detail]
Download: Florida-2019-S0618-Introduced.html
Florida Senate - 2019 SB 618 By Senator Perry 8-00801-19 2019618__ 1 A bill to be entitled 2 An act relating to the tax on commercial real 3 property; amending s. 212.031, F.S.; providing an 4 exemption from the tax imposed on rental or license 5 fees charged for the use of commercial real property; 6 increasing the amount of the exemption at specified 7 intervals; authorizing the Department of Revenue to 8 review any lease, license, or other information for 9 certain purposes; authorizing the department, under 10 certain circumstances, to adjust the total rental 11 charge subject to the exemption; providing for the 12 future repeal of s. 212.031, F.S., relating to the 13 imposition of a tax on the rental or license fees 14 charged for the use of commercial real property; 15 amending s. 212.0598, F.S.; conforming a provision to 16 changes made by the act; amending s. 212.0602, F.S.; 17 defining the term “qualified production services”; 18 conforming provisions to changes made by the act; 19 amending ss. 212.08, 212.12, 288.1258, 338.234, and 20 341.840, F.S.; conforming provisions to changes made 21 by the act; providing effective dates. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Section 212.031, Florida Statutes, is amended to 26 read: 27 212.031 Tax on rental or license fee for use of real 28 property.— 29 (1)(a) It is declared to be the legislative intent that 30 every person is exercising a taxable privilege who engages in 31 the business of renting, leasing, letting, or granting a license 32 for the use of any real property unless such property is: 33 1. Assessed as agricultural property under s. 193.461. 34 2. Used exclusively as dwelling units. 35 3. Property subject to tax on parking, docking, or storage 36 spaces under s. 212.03(6). 37 4. Recreational property or the common elements of a 38 condominium when subject to a lease between the developer or 39 owner thereof and the condominium association in its own right 40 or as agent for the owners of individual condominium units or 41 the owners of individual condominium units. However, only the 42 lease payments on such property shall be exempt from the tax 43 imposed by this chapter, and any other use made by the owner or 44 the condominium association shall be fully taxable under this 45 chapter. 46 5. A public or private street or right-of-way and poles, 47 conduits, fixtures, and similar improvements located on such 48 streets or rights-of-way, occupied or used by a utility or 49 provider of communications services, as defined by s. 202.11, 50 for utility or communications or television purposes. For 51 purposes of this subparagraph, the term “utility” means any 52 person providing utility services as defined in s. 203.012. This 53 exception also applies to property, wherever located, on which 54 the following are placed: towers, antennas, cables, accessory 55 structures, or equipment, not including switching equipment, 56 used in the provision of mobile communications services as 57 defined in s. 202.11. For purposes of this chapter, towers used 58 in the provision of mobile communications services, as defined 59 in s. 202.11, are considered to be fixtures. 60 6. A public street or road which is used for transportation 61 purposes. 62 7. Property used at an airport exclusively for the purpose 63 of aircraft landing or aircraft taxiing or property used by an 64 airline for the purpose of loading or unloading passengers or 65 property onto or from aircraft or for fueling aircraft. 66 8.a. Property used at a port authority, as defined in s. 67 315.02(2), exclusively for the purpose of oceangoing vessels or 68 tugs docking, or such vessels mooring on property used by a port 69 authority for the purpose of loading or unloading passengers or 70 cargo onto or from such a vessel, or property used at a port 71 authority for fueling such vessels, or to the extent that the 72 amount paid for the use of any property at the port is based on 73 the charge for the amount of tonnage actually imported or 74 exported through the port by a tenant. 75 b. The amount charged for the use of any property at the 76 port in excess of the amount charged for tonnage actually 77 imported or exported shall remain subject to tax except as 78 provided in sub-subparagraph a. 79 9. Property used as an integral part of the performance of 80 qualified production services. As used in this subparagraph, the 81 term “qualified production services” means any activity or 82 service performed directly in connection with the production of 83 a qualified motion picture, as defined in s. 212.06(1)(b), and 84 includes: 85 a. Photography, sound and recording, casting, location 86 managing and scouting, shooting, creation of special and optical 87 effects, animation, adaptation (language, media, electronic, or 88 otherwise), technological modifications, computer graphics, set 89 and stage support (such as electricians, lighting designers and 90 operators, greensmen, prop managers and assistants, and grips), 91 wardrobe (design, preparation, and management), hair and makeup 92 (design, production, and application), performing (such as 93 acting, dancing, and playing), designing and executing stunts, 94 coaching, consulting, writing, scoring, composing, 95 choreographing, script supervising, directing, producing, 96 transmitting dailies, dubbing, mixing, editing, cutting, 97 looping, printing, processing, duplicating, storing, and 98 distributing; 99 b. The design, planning, engineering, construction, 100 alteration, repair, and maintenance of real or personal property 101 including stages, sets, props, models, paintings, and facilities 102 principally required for the performance of those services 103 listed in sub-subparagraph a.; and 104 c. Property management services directly related to 105 property used in connection with the services described in sub 106 subparagraphs a. and b. 107 108 This exemption will inure to the taxpayer upon presentation of 109 the certificate of exemption issued to the taxpayer under the 110 provisions of s. 288.1258. 111 10. Leased, subleased, licensed, or rented to a person 112 providing food and drink concessionaire services within the 113 premises of a convention hall, exhibition hall, auditorium, 114 stadium, theater, arena, civic center, performing arts center, 115 publicly owned recreational facility, or any business operated 116 under a permit issued pursuant to chapter 550. A person 117 providing retail concessionaire services involving the sale of 118 food and drink or other tangible personal property within the 119 premises of an airport shall be subject to tax on the rental of 120 real property used for that purpose, but shall not be subject to 121 the tax on any license to use the property. For purposes of this 122 subparagraph, the term “sale” shall not include the leasing of 123 tangible personal property. 124 11. Property occupied pursuant to an instrument calling for 125 payments which the department has declared, in a Technical 126 Assistance Advisement issued on or before March 15, 1993, to be 127 nontaxable pursuant to rule 12A-1.070(19)(c), Florida 128 Administrative Code; provided that this subparagraph shall only 129 apply to property occupied by the same person before and after 130 the execution of the subject instrument and only to those 131 payments made pursuant to such instrument, exclusive of renewals 132 and extensions thereof occurring after March 15, 1993. 133 12. Property used or occupied predominantly for space 134 flight business purposes. As used in this subparagraph, “space 135 flight business” means the manufacturing, processing, or 136 assembly of a space facility, space propulsion system, space 137 vehicle, satellite, or station of any kind possessing the 138 capacity for space flight, as defined by s. 212.02(23), or 139 components thereof, and also means the following activities 140 supporting space flight: vehicle launch activities, flight 141 operations, ground control or ground support, and all 142 administrative activities directly related thereto. Property 143 shall be deemed to be used or occupied predominantly for space 144 flight business purposes if more than 50 percent of the 145 property, or improvements thereon, is used for one or more space 146 flight business purposes. Possession by a landlord, lessor, or 147 licensor of a signed written statement from the tenant, lessee, 148 or licensee claiming the exemption shall relieve the landlord, 149 lessor, or licensor from the responsibility of collecting the 150 tax, and the department shall look solely to the tenant, lessee, 151 or licensee for recovery of such tax if it determines that the 152 exemption was not applicable. 153 13. Rented, leased, subleased, or licensed to a person 154 providing telecommunications, data systems management, or 155 Internet services at a publicly or privately owned convention 156 hall, civic center, or meeting space at a public lodging 157 establishment as defined in s. 509.013. This subparagraph 158 applies only to that portion of the rental, lease, or license 159 payment that is based upon a percentage of sales, revenue 160 sharing, or royalty payments and not based upon a fixed price. 161 This subparagraph is intended to be clarifying and remedial in 162 nature and shall apply retroactively. This subparagraph does not 163 provide a basis for an assessment of any tax not paid, or create 164 a right to a refund of any tax paid, pursuant to this section 165 before July 1, 2010. 166 (b) When a lease involves multiple use of real property 167 wherein a part of the real property is subject to the tax 168 herein, and a part of the property would be excluded from the 169 tax under subparagraph (a)1., subparagraph (a)2., subparagraph 170 (a)3., or subparagraph (a)5., the department shall determine, 171 from the lease or license and such other information as may be 172 available, that portion of the total rental charge which is 173 exempt from the tax imposed by this section. The portion of the 174 premises leased or rented by a for-profit entity providing a 175 residential facility for the aged will be exempt on the basis of 176 a pro rata portion calculated by combining the square footage of 177 the areas used for residential units by the aged and for the 178 care of such residents and dividing the resultant sum by the 179 total square footage of the rented premises. For purposes of 180 this section, the term “residential facility for the aged” means 181 a facility that is licensed or certified in whole or in part 182 under chapter 400, chapter 429, or chapter 651; or that provides 183 residences to the elderly and is financed by a mortgage or loan 184 made or insured by the United States Department of Housing and 185 Urban Development under s. 202, s. 202 with a s. 8 subsidy, s. 186 221(d)(3) or (4), s. 232, or s. 236 of the National Housing Act; 187 or other such similar facility that provides residences 188 primarily for the elderly. 189 (c) For the exercise of such privilege, a tax is levied at 190 the rate of 5.7 percent of and on the total rent or license fee 191 charged for such real property by the person charging or 192 collecting the rental or license fee. The total rent or license 193 fee charged for such real property shall include payments for 194 the granting of a privilege to use or occupy real property for 195 any purpose and shall include base rent, percentage rents, or 196 similar charges. Such charges shall be included in the total 197 rent or license fee subject to tax under this section whether or 198 not they can be attributed to the ability of the lessor’s or 199 licensor’s property as used or operated to attract customers. 200 Payments for intrinsically valuable personal property such as 201 franchises, trademarks, service marks, logos, or patents are not 202 subject to tax under this section. In the case of a contractual 203 arrangement that provides for both payments taxable as total 204 rent or license fee and payments not subject to tax, the tax 205 shall be based on a reasonable allocation of such payments and 206 shall not apply to that portion which is for the nontaxable 207 payments. 208 (d) When the rental or license fee of any such real 209 property is paid by way of property, goods, wares, merchandise, 210 services, or other thing of value, the tax shall be at the rate 211 of 5.7 percent of the value of the property, goods, wares, 212 merchandise, services, or other thing of value. 213 (e) The tax rate in effect at the time that the tenant or 214 person occupies, uses, or is entitled to occupy or use the real 215 property is the tax rate applicable to the transaction taxable 216 under this section, regardless of when a rent or license fee 217 payment is due or paid. The applicable tax rate may not be 218 avoided by delaying or accelerating rent or license fee 219 payments. 220 (f) The following amounts are exempt from the tax imposed 221 under this section on each lease or license of real property: 222 1. Effective January 1, 2020, the first $10,000 of the 223 total rent or license fee subject to tax under this section 224 which is charged during the calendar year by the person charging 225 or collecting the rental or license fee to the tenant or person 226 actually occupying, using, or entitled to the use of the 227 property. 228 2. Effective January 1, 2021, the first $20,000 of the 229 total rent or license fee subject to tax under this section 230 which is charged during the calendar year by the person charging 231 or collecting the rental or license fee to the tenant or person 232 actually occupying, using, or entitled to the use of the 233 property. 234 3. Effective January 1, 2022, the first $30,000 of the 235 total rent or license fee subject to tax under this section 236 which is charged during the calendar year by the person charging 237 or collecting the rental or license fee to the tenant or person 238 actually occupying, using, or entitled to the use of the 239 property. 240 4. Effective January 1, 2023, the first $40,000 of the 241 total rent or license fee subject to tax under this section 242 which is charged during the calendar year by the person charging 243 or collecting the rental or license fee to the tenant or person 244 actually occupying, using, or entitled to the use of the 245 property. 246 5. Effective January 1, 2024, the first $50,000 of the 247 total rent or license fee subject to tax under this section 248 which is charged during the calendar year by the person charging 249 or collecting the rental or license fee to the tenant or person 250 actually occupying, using, or entitled to the use of the 251 property. 252 6. Effective January 1, 2025, the first $60,000 of the 253 total rent or license fee subject to tax under this section 254 which is charged during the calendar year by the person charging 255 or collecting the rental or license fee to the tenant or person 256 actually occupying, using, or entitled to the use of the 257 property. 258 7. Effective January 1, 2026, the first $70,000 of the 259 total rent or license fee subject to tax under this section 260 which is charged during the calendar year by the person charging 261 or collecting the rental or license fee to the tenant or person 262 actually occupying, using, or entitled to the use of the 263 property. 264 8. Effective January 1, 2027, the first $80,000 of the 265 total rent or license fee subject to tax under this section 266 which is charged during the calendar year by the person charging 267 or collecting the rental or license fee to the tenant or person 268 actually occupying, using, or entitled to the use of the 269 property. 270 9. Effective January 1, 2028, the first $90,000 of the 271 total rent or license fee subject to tax under this section 272 which is charged during the calendar year by the person charging 273 or collecting the rental or license fee to the tenant or person 274 actually occupying, using, or entitled to the use of the 275 property. 276 277 For purposes of administering and implementing the exemptions 278 provided in this paragraph, the department may review any lease, 279 license, or other such information as may be available to 280 determine the total rental charge that is subject to the 281 applicable exemption. The department may adjust the total rental 282 charge subject to the exemption, as necessary, to accurately 283 reflect the intent, terms, duration, or subject of one or more 284 rental or license agreements. 285 (2)(a) The tenant or person actually occupying, using, or 286 entitled to the use of any property from which the rental or 287 license fee is subject to taxation under this section shall pay 288 the tax to his or her immediate landlord or other person 289 granting the right to such tenant or person to occupy or use 290 such real property. 291 (b) It is the further intent of this Legislature that only 292 one tax be collected on the rental or license fee payable for 293 the occupancy or use of any such property, that the tax so 294 collected shall not be pyramided by a progression of 295 transactions, and that the amount of the tax due the state shall 296 not be decreased by any such progression of transactions. 297 (3) The tax imposed by this section shall be in addition to 298 the total amount of the rental or license fee, shall be charged 299 by the lessor or person receiving the rent or payment in and by 300 a rental or license fee arrangement with the lessee or person 301 paying the rental or license fee, and shall be due and payable 302 at the time of the receipt of such rental or license fee payment 303 by the lessor or other person who receives the rental or 304 payment. Notwithstanding any other provision of this chapter, 305 the tax imposed by this section on the rental, lease, or license 306 for the use of a convention hall, exhibition hall, auditorium, 307 stadium, theater, arena, civic center, performing arts center, 308 or publicly owned recreational facility to hold an event of not 309 more than 7 consecutive days’ duration shall be collected at the 310 time of the payment for that rental, lease, or license but is 311 not due and payable to the department until the first day of the 312 month following the last day that the event for which the 313 payment is made is actually held, and becomes delinquent on the 314 21st day of that month. The owner, lessor, or person receiving 315 the rent or license fee shall remit the tax to the department at 316 the times and in the manner hereinafter provided for dealers to 317 remit taxes under this chapter. The same duties imposed by this 318 chapter upon dealers in tangible personal property respecting 319 the collection and remission of the tax; the making of returns; 320 the keeping of books, records, and accounts; and the compliance 321 with the rules and regulations of the department in the 322 administration of this chapter shall apply to and be binding 323 upon all persons who manage any leases or operate real property, 324 hotels, apartment houses, roominghouses, or tourist and trailer 325 camps and all persons who collect or receive rents or license 326 fees taxable under this chapter on behalf of owners or lessors. 327 (4) The tax imposed by this section shall constitute a lien 328 on the property of the lessee or licensee of any real estate in 329 the same manner as, and shall be collectible as are, liens 330 authorized and imposed by ss. 713.68 and 713.69. 331 (5) When space is subleased to a convention or industry 332 trade show in a convention hall, exhibition hall, or auditorium, 333 whether publicly or privately owned, the sponsor who holds the 334 prime lease is subject to tax on the prime lease and the 335 sublease is exempt. 336 (6) The lease or rental of land or a hall or other 337 facilities by a fair association subject to the provisions of 338 chapter 616 to a show promoter or prime operator of a carnival 339 or midway attraction is exempt from the tax imposed by this 340 section; however, the sublease of land or a hall or other 341 facilities by the show promoter or prime operator is not exempt 342 from the provisions of this section. 343 (7) Utility charges subject to sales tax which are paid by 344 a tenant to the lessor and which are part of a payment for the 345 privilege or right to use or occupy real property are exempt 346 from tax if the lessor has paid sales tax on the purchase of 347 such utilities and the charges billed by the lessor to the 348 tenant are separately stated and at the same or a lower price 349 than those paid by the lessor. 350 (8) Charges by lessors to a lessee to cancel or terminate a 351 lease agreement are presumed taxable if the lessor records such 352 charges as rental income in its books and records. This 353 presumption can be overcome by the provision of sufficient 354 documentation by either the lessor or the lessee that such 355 charges were other than for the rental of real property. 356 (9) The rental, lease, sublease, or license for the use of 357 a skybox, luxury box, or other box seats for use during a high 358 school or college football game is exempt from the tax imposed 359 by this section when the charge for such rental, lease, 360 sublease, or license is imposed by a nonprofit sponsoring 361 organization which is qualified as nonprofit pursuant to s. 362 501(c)(3) of the Internal Revenue Code. 363 Section 2. Effective January 1, 2029, section 212.031, 364 Florida Statutes, is repealed. 365 Section 3. Effective January 1, 2029, subsection (2) of 366 section 212.0598, Florida Statutes, is amended to read: 367 212.0598 Special provisions; air carriers.— 368 (2) The basis of the tax shall be the ratio of Florida 369 mileage to total mileage as determined pursuant to chapter 220 370 and this section. The ratio shall be determined at the close of 371 the carrier’s preceding fiscal year. However, during the fiscal 372 year in which the air carrier begins initial operations in this 373 state, the carrier may determine its mileage apportionment 374 factor based on an estimated ratio of anticipated revenue miles 375 in this state to anticipated total revenue miles. In such cases, 376 the air carrier shall pay additional tax or apply for a refund 377 based on the actual ratio for that year. The applicable ratio 378 shall be applied each month to the carrier’s total systemwide 379 gross purchases of tangible personal property and services 380 otherwise taxable in Florida.Additionally, the ratio shall be381applied each month to the carrier’s total systemwide payments382for the lease or rental of, or license in, real property used by383the carrier substantially for aircraft maintenance if that384carrier employed, on average, during the previous calendar385quarter in excess of 3,000 full-time equivalent maintenance or386repair employees at one maintenance base that it leases, rents,387or has a license in, in this state. In all other instances, the388tax on real property leased, rented, or licensed by the carrier389shall be as provided in s. 212.031.390 Section 4. Effective January 1, 2029, section 212.0602, 391 Florida Statutes, is amended to read: 392 212.0602 Education; limited exemption.— 393 (1) To facilitate investment in education and job training, 394 there is also exempt from the taxes levied under this chapter, 395 subject tothe provisions ofthis section, the purchase or lease 396 of materials, equipment, and other itemsor the license in or397lease of real propertyby any entity, institution, or 398 organization that is primarily engaged in teaching students to 399 perform any qualified production servicesof the activities or400services described in s. 212.031(1)(a)9., that conducts classes 401 at a fixed location located in this state, that is licensed 402 under chapter 1005, and that has at least 500 enrolled students. 403 Any entity, institution, or organization meeting the 404 requirements of this section isshall bedeemed to qualify for 405 the exemptions in s. 212.08(5)(f) and (12)ss. 212.031(1)(a)9.406and212.08(5)(f) and (12),and to qualify for an exemption for 407 its purchase or lease of materials, equipment, and other items 408 used for education or demonstration of the school’s curriculum, 409 including supporting operations. Nothing in this section shall 410 preclude an entity described in this section from qualifying for 411 any other exemption provided for in this chapter. 412 (2) As used in this section, the term “qualified production 413 services” means any activity or service performed directly in 414 connection with the production of a qualified motion picture, as 415 defined in s. 212.06(1)(b), and includes: 416 (a) Photography, sound and recording, casting, location 417 managing and scouting, shooting, creation of special and optical 418 effects, animation, adaptation (language, media, electronic, or 419 otherwise), technological modifications, computer graphics, set 420 and stage support (such as electricians, lighting designers and 421 operators, greensmen, prop managers and assistants, and grips), 422 wardrobe (design, preparation, and management), hair and makeup 423 (design, production, and application), performing (such as 424 acting, dancing, and playing), designing and executing stunts, 425 coaching, consulting, writing, scoring, composing, 426 choreographing, script supervising, directing, producing, 427 transmitting dailies, dubbing, mixing, editing, cutting, 428 looping, printing, processing, duplicating, storing, and 429 distributing. 430 (b) The design, planning, engineering, construction, 431 alteration, repair, and maintenance of real or personal 432 property, including stages, sets, props, models, paintings, and 433 facilities principally required for the performance of the 434 services identified in paragraph (a). 435 (c) Property management services directly related to 436 property used in connection with the services identified in 437 paragraphs (a) and (b). 438 Section 5. Effective January 1, 2029, paragraph (s) of 439 subsection (5) of section 212.08, Florida Statutes, is amended 440 to read: 441 212.08 Sales, rental, use, consumption, distribution, and 442 storage tax; specified exemptions.—The sale at retail, the 443 rental, the use, the consumption, the distribution, and the 444 storage to be used or consumed in this state of the following 445 are hereby specifically exempt from the tax imposed by this 446 chapter. 447 (5) EXEMPTIONS; ACCOUNT OF USE.— 448 (s) Data center property.— 449 1. As used in this paragraph, the term: 450 a. “Critical IT load” means that portion of electric power 451 capacity, expressed in terms of megawatts, which is reserved 452 solely for owners or tenants of a data center to operate their 453 computer server equipment. The term does not include any 454 ancillary load for cooling, lighting, common areas, or other 455 equipment. 456 b. “Cumulative capital investment” means the combined total 457 of all expenses incurred by the owners or tenants of a data 458 center after July 1, 2017, in connection with acquiring, 459 constructing, installing, equipping, or expanding the data 460 center. However, the term does not include any expenses incurred 461 in the acquisition of improved real property operating as a data 462 center at the time of acquisition or within 6 months before the 463 acquisition. 464 c. “Data center” means a facility that: 465 (I) Consists of one or more contiguous parcels in this 466 state, along with the buildings, substations and other 467 infrastructure, fixtures, and personal property located on the 468 parcels; 469 (II) Is used exclusively to house and operate equipment 470 that receives, stores, aggregates, manages, processes, 471 transforms, retrieves, researches, or transmits data; or that is 472 necessary for the proper operation of equipment that receives, 473 stores, aggregates, manages, processes, transforms, retrieves, 474 researches, or transmits data; 475 (III) Has a critical IT load of 15 megawatts or higher, and 476 a critical IT load of 1 megawatt or higher dedicated to each 477 individual owner or tenant within the data center; and 478 (IV) Is constructed on or after July 1, 2017. 479 d. “Data center property” means property used exclusively 480 at a data center to construct, outfit, operate, support, power, 481 cool, dehumidify, secure, or protect a data center and any 482 contiguous dedicated substations. The term includes, but is not 483 limited to, construction materials, component parts, machinery, 484 equipment, computers, servers, installations, redundancies, and 485 operating or enabling software, including any replacements, 486 updates and new versions, and upgrades to or for such property, 487 regardless of whether the property is a fixture or is otherwise 488 affixed to or incorporated into real property. The term also 489 includes electricity used exclusively at a data center. 490 2. Data center property is exempt from the tax imposed by 491 this chapter, except for the tax imposed by s. 212.031. To be 492 eligible for the exemption provided by this paragraph, the data 493 center’s owners and tenants must make a cumulative capital 494 investment of $150 million or more for the data center and the 495 data center must have a critical IT load of 15 megawatts or 496 higher and a critical IT load of 1 megawatt or higher dedicated 497 to each individual owner or tenant within the data center. Each 498 of these requirements must be satisfied no later than 5 years 499 after the commencement of construction of the data center. 500 3.a. To receive the exemption provided by this paragraph, 501 the person seeking the exemption must apply to the department 502 for a temporary tax exemption certificate. The application must 503 state that a qualifying data center designation is being sought 504 and provide information that the requirements of subparagraph 2. 505 will be met. Upon a tentative determination by the department 506 that the data center will meet the requirements of subparagraph 507 2., the department must issue the certificate. 508 b.(I) The certificateholder shall maintain all necessary 509 books and records to support the exemption provided by this 510 paragraph. Upon satisfaction of all requirements of subparagraph 511 2., the certificateholder must deliver the temporary tax 512 certificate to the department together with documentation 513 sufficient to show the satisfaction of the requirements. Such 514 documentation must include written declarations, pursuant to s. 515 92.525, from: 516 (A) A professional engineer, licensed pursuant to chapter 517 471, certifying that the critical IT load requirement set forth 518 in subparagraph 2. has been satisfied at the data center; and 519 (B) A Florida certified public accountant, as defined in s. 520 473.302, certifying that the cumulative capital investment 521 requirement set forth in subparagraph 2. has been satisfied for 522 the data center. 523 524 The professional engineer and the Florida certified public 525 accountant may not be professionally related with the data 526 center’s owners, tenants, or contractors, except that they may 527 be retained by a data center owner to certify that the 528 requirements of subparagraph 2. have been met. 529 (II) If the department determines that the subparagraph 2. 530 requirements have been satisfied, the department must issue a 531 permanent tax exemption certificate. 532 (III) Notwithstanding s. 212.084(4), the permanent tax 533 exemption certificate remains valid and effective for as long as 534 the data center described in the exemption application continues 535 to operate as a data center as defined in subparagraph 1., with 536 review by the department every 5 years to ensure compliance. As 537 part of the review, the certificateholder shall, within 3 months 538 before the end of any 5-year period, submit a written 539 declaration, pursuant to s. 92.525, certifying that the critical 540 IT load of 15 megawatts or higher and the critical IT load of 1 541 megawatt or higher dedicated to each individual owner or tenant 542 within the data center required by subparagraph 2. continues to 543 be met. All owners, tenants, contractors, and others purchasing 544 exempt data center property shall maintain all necessary books 545 and records to support the exemption as to those purchases. 546 (IV) Notwithstanding s. 213.053, the department may share 547 information concerning a temporary or permanent data center 548 exemption certificate among all owners, tenants, contractors, 549 and others purchasing exempt data center property pursuant to 550 such certificate. 551 c. If, in an audit conducted by the department, it is 552 determined that the certificateholder or any owners, tenants, 553 contractors, or others purchasing, renting, or leasing data 554 center property do not meet the criteria of this paragraph, the 555 amount of taxes exempted at the time of purchase, rental, or 556 lease is immediately due and payable to the department from the 557 purchaser, renter, or lessee of those particular items, together 558 with the appropriate interest and penalty computed from the date 559 of purchase in the manner prescribed by this chapter. 560 Notwithstanding s. 95.091(3)(a), any tax due as provided in this 561 sub-subparagraph may be assessed by the department within 6 562 years after the date the data center property was purchased. 563 d. Purchasers, lessees, and renters of data center property 564 who qualify for the exemption provided by this paragraph shall 565 obtain from the data center a copy of the tax exemption 566 certificate issued pursuant to sub-subparagraph a. or sub 567 subparagraph b. Before or at the time of purchase of the item or 568 items eligible for exemption, the purchaser, lessee, or renter 569 shall provide to the seller a copy of the tax exemption 570 certificate and a signed certificate of entitlement. Purchasers, 571 lessees, and renters with self-accrual authority shall maintain 572 all documentation necessary to prove the exempt status of 573 purchases. 574 e. For any purchase, lease, or rental of property that is 575 exempt pursuant to this paragraph, the possession of a copy of a 576 tax exemption certificate issued pursuant to sub-subparagraph a. 577 or sub-subparagraph b. and a signed certificate of entitlement 578 relieves the seller of the responsibility of collecting the tax 579 on the sale, lease, or rental of such property, and the 580 department must look solely to the purchaser, renter, or lessee 581 for recovery of the tax if it determines that the purchase, 582 rental, or lease was not entitled to the exemption. 583 4. After June 30, 2022, the department may not issue a 584 temporary tax exemption certificate pursuant to this paragraph. 585 Section 6. Effective January 1, 2029, subsection (11) of 586 section 212.12, Florida Statutes, is amended to read: 587 212.12 Dealer’s credit for collecting tax; penalties for 588 noncompliance; powers of Department of Revenue in dealing with 589 delinquents; brackets applicable to taxable transactions; 590 records required.— 591 (11) The department shall make available in an electronic 592 format or otherwise the tax amounts and brackets applicable to 593 all taxable transactions that occur in counties that have a 594 surtax at a rate other than 1 percent which would otherwise have 595 been transactions taxable at the rate of 6 percent. Likewise, 596 the department shall make available in an electronic format or 597 otherwise the tax amounts and brackets applicable to 598 transactions taxable at 4.35 percent pursuant to s. 599 212.05(1)(e)1.c.or the applicable tax rate pursuant to s.600212.031(1)and on transactions thatwhichwould otherwise have 601 been so taxable in counties thatwhichhave adopted a 602 discretionary sales surtax. 603 Section 7. Effective January 1, 2029, paragraphs (b) and 604 (c) of subsection (2) and subsection (3) of section 288.1258, 605 Florida Statutes, are amended to read: 606 288.1258 Entertainment industry qualified production 607 companies; application procedure; categories; duties of the 608 Department of Revenue; records and reports.— 609 (2) APPLICATION PROCEDURE.— 610 (b)1. The Office of Film and Entertainment shall establish 611 a process by which an entertainment industry production company 612 may be approved by the office as a qualified production company 613 and may receive a certificate of exemption from the Department 614 of Revenue for the sales and use tax exemptions under ss. 615212.031,212.06,and 212.08. 616 2. Upon determination by the Office of Film and 617 Entertainment that a production company meets the established 618 approval criteria and qualifies for exemption, the Office of 619 Film and Entertainment shall return the approved application or 620 application renewal or extension to the Department of Revenue, 621 which shall issue a certificate of exemption. 622 3. The Office of Film and Entertainment shall deny an 623 application or application for renewal or extension from a 624 production company if it determines that the production company 625 does not meet the established approval criteria. 626 (c) The Office of Film and Entertainment shall develop, 627 with the cooperation of the Department of Revenue and local 628 government entertainment industry promotion agencies, a 629 standardized application form for use in approving qualified 630 production companies. 631 1. The application form shall include, but not be limited 632 to, production-related information on employment, proposed 633 budgets, planned purchases of items exempted from sales and use 634 taxes under ss.212.031,212.06,and 212.08, a signed 635 affirmation from the applicant that any items purchased for 636 which the applicant is seeking a tax exemption are intended for 637 use exclusively as an integral part of entertainment industry 638 preproduction, production, or postproduction activities engaged 639 in primarily in this state, and a signed affirmation from the 640 Office of Film and Entertainment that the information on the 641 application form has been verified and is correct. In lieu of 642 information on projected employment, proposed budgets, or 643 planned purchases of exempted items, a production company 644 seeking a 1-year certificate of exemption may submit summary 645 historical data on employment, production budgets, and purchases 646 of exempted items related to production activities in this 647 state. Any information gathered from production companies for 648 the purposes of this section shall be considered confidential 649 taxpayer information and shall be disclosed only as provided in 650 s. 213.053. 651 2. The application form may be distributed to applicants by 652 the Office of Film and Entertainment or local film commissions. 653 (3) CATEGORIES.— 654 (a)1. A production company may be qualified for designation 655 as a qualified production company for a period of 1 year if the 656 company has operated a business in Florida at a permanent 657 address for a period of 12 consecutive months. Such a qualified 658 production company shall receive a single 1-year certificate of 659 exemption from the Department of Revenue for the sales and use 660 tax exemptions under ss.212.031,212.06,and 212.08, which 661 certificate shall expire 1 year after issuance or upon the 662 cessation of business operations in the state, at which time the 663 certificate shall be surrendered to the Department of Revenue. 664 2. The Office of Film and Entertainment shall develop a 665 method by which a qualified production company may annually 666 renew a 1-year certificate of exemption for a period of up to 5 667 years without requiring the production company to resubmit a new 668 application during that 5-year period. 669 3. Any qualified production company may submit a new 670 application for a 1-year certificate of exemption upon the 671 expiration of that company’s certificate of exemption. 672 (b)1. A production company may be qualified for designation 673 as a qualified production company for a period of 90 days. Such 674 production company shall receive a single 90-day certificate of 675 exemption from the Department of Revenue for the sales and use 676 tax exemptions under ss.212.031,212.06,and 212.08, which 677 certificate shall expire 90 days after issuance, with extensions 678 contingent upon approval of the Office of Film and 679 Entertainment. The certificate shall be surrendered to the 680 Department of Revenue upon its expiration. 681 2. Any production company may submit a new application for 682 a 90-day certificate of exemption upon the expiration of that 683 company’s certificate of exemption. 684 Section 8. Effective January 1, 2029, section 338.234, 685 Florida Statutes, is amended to read: 686 338.234 Granting concessions or selling along the turnpike 687 system; immunity from taxation.— 688(1)The department may enter into contracts or licenses 689 with any person for the sale of services or products or business 690 opportunities on the turnpike system, or the turnpike enterprise 691 may sell services, products, or business opportunities on the 692 turnpike system, which benefit the traveling public or provide 693 additional revenue to the turnpike system. Services, business 694 opportunities, and products authorized to be sold include, but 695 are not limited to, motor fuel, vehicle towing, and vehicle 696 maintenance services; food with attendant nonalcoholic 697 beverages; lodging, meeting rooms, and other business services 698 opportunities; advertising and other promotional opportunities, 699 which advertising and promotions must be consistent with the 700 dignity and integrity of the state; state lottery tickets sold 701 by authorized retailers; games and amusements that operate by 702 the application of skill, not including games of chance as 703 defined in s. 849.16 or other illegal gambling games; Florida 704 citrus, goods promoting the state, or handmade goods produced 705 within the state; and travel information, tickets, reservations, 706 or other related services. However, the department, pursuant to 707 the grants of authority to the turnpike enterprise under this 708 section, shall not exercise the power of eminent domain solely 709 for the purpose of acquiring real property in order to provide 710 business services or opportunities, such as lodging and meeting 711 room space on the turnpike system. 712(2)The effectuation of the authorized purposes of the713Strategic Intermodal System, created under ss. 339.61-339.65,714and Florida Turnpike Enterprise, created under this chapter, is715for the benefit of the people of the state, for the increase of716their commerce and prosperity, and for the improvement of their717health and living conditions; and, because the system and718enterprise perform essential government functions in719effectuating such purposes, neither the turnpike enterprise nor720any nongovernment lessee or licensee renting, leasing, or721licensing real property from the turnpike enterprise, pursuant722to an agreement authorized by this section, are required to pay723any commercial rental tax imposed under s. 212.031 on any724capital improvements constructed, improved, acquired, installed,725or used for such purposes.726 Section 9. Effective January 1, 2029, paragraph (a) of 727 subsection (3) of section 341.840, Florida Statutes, is amended 728 to read: 729 341.840 Tax exemption.— 730 (3)(a) Purchases or leases of tangible personal property or 731 real property by the enterprise, excluding agents of the 732 enterprise, are exempt from taxes imposed by chapter 212 as 733 provided in s. 212.08(6). Purchases or leases of tangible 734 personal property that is incorporated into the high-speed rail 735 system as a component part thereof, as determined by the 736 enterprise, by agents of the enterprise or the owner of the 737 high-speed rail system are exempt from sales or use taxes 738 imposed by chapter 212.Leases, rentals, or licenses to use real739property granted to agents of the enterprise or the owner of the740high-speed rail system are exempt from taxes imposed by s.741212.031 if the real property becomes part of such system.The 742 exemptions granted in this subsection do not apply to sales, 743 leases, or licenses by the enterprise, agents of the enterprise, 744 or the owner of the high-speed rail system. 745 Section 10. Except as otherwise expressly provided in this 746 act, this act shall take effect July 1, 2019.