Bill Text: FL S0618 | 2019 | Regular Session | Introduced


Bill Title: Tax on Commercial Real Property

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-03-05 - Introduced [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 be
  381  applied each month to the carrier’s total systemwide payments
  382  for the lease or rental of, or license in, real property used by
  383  the carrier substantially for aircraft maintenance if that
  384  carrier employed, on average, during the previous calendar
  385  quarter in excess of 3,000 full-time equivalent maintenance or
  386  repair employees at one maintenance base that it leases, rents,
  387  or has a license in, in this state. In all other instances, the
  388  tax on real property leased, rented, or licensed by the carrier
  389  shall 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 to the provisions of this section, the purchase or lease
  396  of materials, equipment, and other items or the license in or
  397  lease of real property by any entity, institution, or
  398  organization that is primarily engaged in teaching students to
  399  perform any qualified production services of the activities or
  400  services 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 is shall be deemed to qualify for
  405  the exemptions in s. 212.08(5)(f) and (12) ss. 212.031(1)(a)9.
  406  and 212.08(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.
  600  212.031(1) and on transactions that which would otherwise have
  601  been so taxable in counties that which have 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.
  615  212.031, 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 the
  713  Strategic Intermodal System, created under ss. 339.61-339.65,
  714  and Florida Turnpike Enterprise, created under this chapter, is
  715  for the benefit of the people of the state, for the increase of
  716  their commerce and prosperity, and for the improvement of their
  717  health and living conditions; and, because the system and
  718  enterprise perform essential government functions in
  719  effectuating such purposes, neither the turnpike enterprise nor
  720  any nongovernment lessee or licensee renting, leasing, or
  721  licensing real property from the turnpike enterprise, pursuant
  722  to an agreement authorized by this section, are required to pay
  723  any commercial rental tax imposed under s. 212.031 on any
  724  capital improvements constructed, improved, acquired, installed,
  725  or 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 real
  739  property granted to agents of the enterprise or the owner of the
  740  high-speed rail system are exempt from taxes imposed by s.
  741  212.031 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.

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