Bill Text: FL S1406 | 2011 | Regular Session | Introduced
Bill Title: Local Effort School Property Tax/Sales Tax
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1406 Detail]
Download: Florida-2011-S1406-Introduced.html
Florida Senate - 2011 SB 1406 By Senator Bogdanoff 25-01483-11 20111406__ 1 A bill to be entitled 2 An act relating to replacing revenue from the required 3 local effort school property tax with revenue from a 4 state sales tax increase; providing legislative intent 5 and findings; amending ss. 212.03, 212.031, 212.04, 6 212.05, 212.0501, 212.0506, 212.06, and 212.08, F.S.; 7 providing for a 2.5 cent increase in the tax on sales, 8 use, and other transactions; amending s. 212.12, F.S.; 9 revising brackets for calculating sales tax amounts; 10 amending s. 212.20, F.S.; providing for reservation 11 and allocation of revenues from the additional 2.5 12 cent increase in the tax rate; amending ss. 11.45, 13 202.18, 218.245, 218.65, 288.11621, and 288.1169, 14 F.S.; conforming cross-references; amending s. 15 1011.62, F.S.; conforming provisions relating to 16 calculating the required local effort for school 17 funding; amending s. 1011.71, F.S.; deleting a 18 requirement that a district school board levy the 19 minimum millage rate necessary to provide the 20 district’s required local effort; amending s. 218.67, 21 F.S.; conforming provisions relating to funding for 22 fiscally constrained counties; amending s. 1002.32, 23 F.S.; conforming provisions relating to funding for 24 developmental research schools; amending s. 1011.02, 25 F.S.; conforming provisions relating to the adoption 26 of a district school board budget; amending s. 27 200.065, F.S.; revising the notice form relating to a 28 district school board’s proposed tax increase for 29 required local effort; providing effective dates. 30 31 WHEREAS, job creation is the number-one goal of Florida 32 residents, and 33 WHEREAS, in addition to tourism and agriculture, growth is 34 one of the three pillars of Florida’s economy, and 35 WHEREAS, although Florida does not levy a state income tax, 36 it is widely known that property taxes are often a barrier to 37 growth and business expansion of existing Florida businesses and 38 expansion and relocation to Florida for businesses currently 39 located outside of Florida, and 40 WHEREAS, decreases in fixed-cost asset taxes, including, 41 but not limited to, property taxes, that must be paid whether or 42 not a profit is made and revenue-neutral replacement of the 43 fixed-cost asset taxes with variable cost transaction and 44 consumption taxes will benefit businesses that are considering 45 expansion in and relocation to Florida, and 46 WHEREAS, decreases in property taxes will allow Florida 47 homeowners and renters to choose where to direct the money they 48 save through reduced property taxes and rent, and 49 WHEREAS, approximately 25 percent of sales taxes are paid 50 by Florida visitors, and 51 WHEREAS, the required local effort school property tax that 52 is required by the state to be levied by the local governments 53 to fund public education is approximately $8 billion and is 54 often 30 percent or more of the overall property tax levied by 55 most Florida local governments, and 56 WHEREAS, there is no statutory provision that requires 57 public education to be funded by property taxes rather than by 58 other methods of taxation, NOW, THEREFORE, 59 60 Be It Enacted by the Legislature of the State of Florida: 61 62 Section 1. Legislative intent and findings.— 63 (1) The Legislature intends to stimulate growth, business 64 expansion, and job creation through revenue-neutral tax reform. 65 Therefore, the Legislature finds that: 66 (a) The required local effort school property tax shall be 67 replaced in a revenue-neutral manner by a 2.5 cent sales tax 68 increase. 69 (b) The required local effort school property tax shall be 70 eliminated from the local property tax levy beginning in 71 November 2012, and a 2.5 cent sales tax increase shall become 72 effective beginning January 1, 2012, in order to build up funds 73 for replacing the required local effort dollar for dollar. 74 (c) The formulas currently used for determining required 75 local effort shall be maintained, but future monetary increases 76 or decreases required by such formulas shall be generated on a 77 dollar-for-dollar basis from a 2.5 cent sales tax increase 78 rather than from the adjustment of property tax millage. 79 (d) It is financially prudent to allow the buildup of a 80 revenue reserve from the increase in the sales tax to shield 81 against any potential economic downturn and to ensure that 82 sufficient funds are available for replacing the currently 83 required local effort school property tax. However, if the 84 reserve exceeds 50 percent of the estimated annual amount that 85 would otherwise have to come from the required local effort, the 86 Legislature intends to distribute the excess reserve to local 87 school boards on a dollar-for-dollar basis to reduce local 88 option school property taxes. 89 (2) The Legislature intends for the specific sales tax 90 increase provided for in this act to be a replacement for the 91 required local effort school property tax and for such tax to be 92 known and referred to as the “Specified Education Sales Tax.” 93 Section 2. Subsections (1), (3), and (6) of section 212.03, 94 Florida Statutes, are amended to read: 95 212.03 Transient rentals tax; rate, procedure, enforcement, 96 exemptions.— 97 (1)(a) It is hereby declared to be the legislative intent 98 that every person is exercising a taxable privilege who engages 99 in the business of renting, leasing, letting, or granting a 100 license to use any living quarters or sleeping or housekeeping 101 accommodations in, from, or a part of, or in connection with any 102 hotel, apartment house, roominghouse, tourist or trailer camp, 103 mobile home park, recreational vehicle park, condominium, or 104 timeshare resort. However, any person who rents, leases, lets, 105 or grants a license to others to use, occupy, or enter upon any 106 living quarters or sleeping or housekeeping accommodations in 107 any apartment house, roominghouse, tourist camp, trailer camp, 108 mobile home park, recreational vehicle park, condominium, or 109 timeshare resort and who exclusively enters into a bona fide 110 written agreement for continuous residence for longer than 6 111 months in duration at such property is not exercising a taxable 112 privilege. For the exercise of such taxable privilege, a tax is 113 hereby levied in an amount equal to 8.56percent of and on the 114 total rental charged for such living quarters or sleeping or 115 housekeeping accommodations by the person charging or collecting 116 the rental. Such tax shall apply to hotels, apartment houses, 117 roominghouses, tourist or trailer camps, mobile home parks, 118 recreational vehicle parks, condominiums, or timeshare resorts, 119 whether or not these facilities have dining rooms, cafes, or 120 other places where meals or lunches are sold or served to 121 guests. 122 (b)1. Tax shall be due on the consideration paid for 123 occupancy in the county pursuant to a regulated short-term 124 product, as defined in s. 721.05, or occupancy in the county 125 pursuant to a product that would be deemed a regulated short 126 term product if the agreement to purchase the short-term right 127 was executed in this state. Such tax shall be collected on the 128 last day of occupancy within the county unless such 129 consideration is applied to the purchase of a timeshare estate. 130 The occupancy of an accommodation of a timeshare resort pursuant 131 to a timeshare plan, a multisite timeshare plan, or an exchange 132 transaction in an exchange program, as defined in s. 721.05, by 133 the owner of a timeshare interest or such owner’s guest, which 134 guest is not paying monetary consideration to the owner or to a 135 third party for the benefit of the owner, is not a privilege 136 subject to taxation under this section. A membership or 137 transaction fee paid by a timeshare owner that does not provide 138 the timeshare owner with the right to occupy any specific 139 timeshare unit but merely provides the timeshare owner with the 140 opportunity to exchange a timeshare interest through an exchange 141 program is a service charge and not subject to taxation under 142 this section. 143 2. Consideration paid for the purchase of a timeshare 144 license in a timeshare plan, as defined in s. 721.05, is rent 145 subject to taxation under this section. 146 (3) When rentals are received by way of property, goods, 147 wares, merchandise, services, or other things of value, the tax 148 shall be at the rate of 8.56percent of the value of the 149 property, goods, wares, merchandise, services, or other things 150 of value. 151 (6) It is the legislative intent that every person is 152 engaging in a taxable privilege who leases or rents parking or 153 storage spaces for motor vehicles in parking lots or garages, 154 who leases or rents docking or storage spaces for boats in boat 155 docks or marinas, or who leases or rents tie-down or storage 156 space for aircraft at airports. For the exercise of this 157 privilege, a tax is hereby levied at the rate of 8.56percent 158 on the total rental charged. 159 Section 3. Paragraphs (c) and (d) of subsection (1) of 160 section 212.031, Florida Statutes, are amended to read: 161 212.031 Tax on rental or license fee for use of real 162 property.— 163 (1) 164 (c) For the exercise of such privilege, a tax is levied in 165 an amount equal to 8.56percent of and on the total rent or 166 license fee charged for such real property by the person 167 charging or collecting the rental or license fee. The total rent 168 or license fee charged for such real property shall include 169 payments for the granting of a privilege to use or occupy real 170 property for any purpose and shall include base rent, percentage 171 rents, or similar charges. Such charges shall be included in the 172 total rent or license fee subject to tax under this section 173 whether or not they can be attributed to the ability of the 174 lessor’s or licensor’s property as used or operated to attract 175 customers. Payments for intrinsically valuable personal property 176 such as franchises, trademarks, service marks, logos, or patents 177 are not subject to tax under this section. In the case of a 178 contractual arrangement that provides for both payments taxable 179 as total rent or license fee and payments not subject to tax, 180 the tax shall be based on a reasonable allocation of such 181 payments and shall not apply to that portion which is for the 182 nontaxable payments. 183 (d) When the rental or license fee of any such real 184 property is paid by way of property, goods, wares, merchandise, 185 services, or other thing of value, the tax shall be at the rate 186 of 8.56percent of the value of the property, goods, wares, 187 merchandise, services, or other thing of value. 188 Section 4. Paragraph (b) of subsection (1) and paragraph 189 (a) of subsection (2) of section 212.04, Florida Statutes, are 190 amended to read: 191 212.04 Admissions tax; rate, procedure, enforcement.— 192 (1) 193 (b) For the exercise of such privilege, a tax is levied at 194 the rate of 8.56percent of sales price, or the actual value 195 received from such admissions, which 8.56percent shall be 196 added to and collected with all such admissions from the 197 purchaser thereof, and such tax shall be paid for the exercise 198 of the privilege as defined in the preceding paragraph. Each 199 ticket must show on its face the actual sales price of the 200 admission, or each dealer selling the admission must prominently 201 display at the box office or other place where the admission 202 charge is made a notice disclosing the price of the admission, 203 and the tax shall be computed and collected on the basis of the 204 actual price of the admission charged by the dealer. The sale 205 price or actual value of admission shall, for the purpose of 206 this chapter, be that price remaining after deduction of federal 207 taxes and state or locally imposed or authorized seat 208 surcharges, taxes, or fees, if any, imposed upon such admission. 209 The sale price or actual value does not include separately 210 stated ticket service charges that are imposed by a facility 211 ticket office or a ticketing service and added to a separately 212 stated, established ticket price. The rate of tax on each 213 admission shall be according to the brackets established by s. 214 212.12(9). 215 (2)(a)1. No tax shall be levied on admissions to athletic 216 or other events sponsored by elementary schools, junior high 217 schools, middle schools, high schools, community colleges, 218 public or private colleges and universities, deaf and blind 219 schools, facilities of the youth services programs of the 220 Department of Children and Family Services, and state 221 correctional institutions when only student, faculty, or inmate 222 talent is used. However, this exemption shall not apply to 223 admission to athletic events sponsored by a state university, 224 and the proceeds of the tax collected on such admissions shall 225 be retained and used by each institution to support women’s 226 athletics as provided in s. 1006.71(2)(c). 227 2.a. No tax shall be levied on dues, membership fees, and 228 admission charges imposed by not-for-profit sponsoring 229 organizations. To receive this exemption, the sponsoring 230 organization must qualify as a not-for-profit entity under the 231 provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, 232 as amended. 233 b. No tax shall be levied on admission charges to an event 234 sponsored by a governmental entity, sports authority, or sports 235 commission when held in a convention hall, exhibition hall, 236 auditorium, stadium, theater, arena, civic center, performing 237 arts center, or publicly owned recreational facility and when 238 100 percent of the risk of success or failure lies with the 239 sponsor of the event and 100 percent of the funds at risk for 240 the event belong to the sponsor, and student or faculty talent 241 is not exclusively used. As used in this sub-subparagraph, the 242 terms “sports authority” and “sports commission” mean a 243 nonprofit organization that is exempt from federal income tax 244 under s. 501(c)(3) of the Internal Revenue Code and that 245 contracts with a county or municipal government for the purpose 246 of promoting and attracting sports-tourism events to the 247 community with which it contracts. 248 3. No tax shall be levied on an admission paid by a 249 student, or on the student’s behalf, to any required place of 250 sport or recreation if the student’s participation in the sport 251 or recreational activity is required as a part of a program or 252 activity sponsored by, and under the jurisdiction of, the 253 student’s educational institution, provided his or her 254 attendance is as a participant and not as a spectator. 255 4. No tax shall be levied on admissions to the National 256 Football League championship game or Pro Bowl; on admissions to 257 any semifinal game or championship game of a national collegiate 258 tournament; on admissions to a Major League Baseball, National 259 Basketball Association, or National Hockey League all-star game; 260 on admissions to the Major League Baseball Home Run Derby held 261 before the Major League Baseball All-Star Game; or on admissions 262 to the National Basketball Association Rookie Challenge, 263 Celebrity Game, 3-Point Shooting Contest, or Slam Dunk 264 Challenge. 265 5. A participation fee or sponsorship fee imposed by a 266 governmental entity as described in s. 212.08(6) for an athletic 267 or recreational program is exempt when the governmental entity 268 by itself, or in conjunction with an organization exempt under 269 s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, 270 sponsors, administers, plans, supervises, directs, and controls 271 the athletic or recreational program. 272 6. Also exempt from the tax imposed by this section to the 273 extent provided in this subparagraph are admissions to live 274 theater, live opera, or live ballet productions in this state 275 which are sponsored by an organization that has received a 276 determination from the Internal Revenue Service that the 277 organization is exempt from federal income tax under s. 278 501(c)(3) of the Internal Revenue Code of 1954, as amended, if 279 the organization actively participates in planning and 280 conducting the event, is responsible for the safety and success 281 of the event, is organized for the purpose of sponsoring live 282 theater, live opera, or live ballet productions in this state, 283 has more than 10,000 subscribing members and has among the 284 stated purposes in its charter the promotion of arts education 285 in the communities which it serves, and will receive at least 20 286 percent of the net profits, if any, of the events which the 287 organization sponsors and will bear the risk of at least 20 288 percent of the losses, if any, from the events which it sponsors 289 if the organization employs other persons as agents to provide 290 services in connection with a sponsored event. Prior to March 1 291 of each year, such organization may apply to the department for 292 a certificate of exemption for admissions to such events 293 sponsored in this state by the organization during the 294 immediately following state fiscal year. The application shall 295 state the total dollar amount of admissions receipts collected 296 by the organization or its agents from such events in this state 297 sponsored by the organization or its agents in the year 298 immediately preceding the year in which the organization applies 299 for the exemption. Such organization shall receive the exemption 300 only to the extent of $1.5 million multiplied by the ratio that 301 such receipts bear to the total of such receipts of all 302 organizations applying for the exemption in such year; however, 303 in no event shall such exemption granted to any organization 304 exceed 8.56percent of such admissions receipts collected by 305 the organization or its agents in the year immediately preceding 306 the year in which the organization applies for the exemption. 307 Each organization receiving the exemption shall report each 308 month to the department the total admissions receipts collected 309 from such events sponsored by the organization during the 310 preceding month and shall remit to the department an amount 311 equal to 8.56percent of such receipts reduced by any amount 312 remaining under the exemption. Tickets for such events sold by 313 such organizations shall not reflect the tax otherwise imposed 314 under this section. 315 7. Also exempt from the tax imposed by this section are 316 entry fees for participation in freshwater fishing tournaments. 317 8. Also exempt from the tax imposed by this section are 318 participation or entry fees charged to participants in a game, 319 race, or other sport or recreational event if spectators are 320 charged a taxable admission to such event. 321 9. No tax shall be levied on admissions to any postseason 322 collegiate football game sanctioned by the National Collegiate 323 Athletic Association. 324 Section 5. Subsection (1) of section 212.05, Florida 325 Statutes, is amended to read: 326 212.05 Sales, storage, use tax.—It is hereby declared to be 327 the legislative intent that every person is exercising a taxable 328 privilege who engages in the business of selling tangible 329 personal property at retail in this state, including the 330 business of making mail order sales, or who rents or furnishes 331 any of the things or services taxable under this chapter, or who 332 stores for use or consumption in this state any item or article 333 of tangible personal property as defined herein and who leases 334 or rents such property within the state. 335 (1) For the exercise of such privilege, a tax is levied on 336 each taxable transaction or incident, which tax is due and 337 payable as follows: 338 (a)1.a. At the rate of 8.56percent of the sales price of 339 each item or article of tangible personal property when sold at 340 retail in this state, computed on each taxable sale for the 341 purpose of remitting the amount of tax due the state, and 342 including each and every retail sale. 343 b. Each occasional or isolated sale of an aircraft, boat, 344 mobile home, or motor vehicle of a class or type which is 345 required to be registered, licensed, titled, or documented in 346 this state or by the United States Government shall be subject 347 to tax at the rate provided in this paragraph. The department 348 shall by rule adopt any nationally recognized publication for 349 valuation of used motor vehicles as the reference price list for 350 any used motor vehicle which is required to be licensed pursuant 351 to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any 352 party to an occasional or isolated sale of such a vehicle 353 reports to the tax collector a sales price which is less than 80 354 percent of the average loan price for the specified model and 355 year of such vehicle as listed in the most recent reference 356 price list, the tax levied under this paragraph shall be 357 computed by the department on such average loan price unless the 358 parties to the sale have provided to the tax collector an 359 affidavit signed by each party, or other substantial proof, 360 stating the actual sales price. Any party to such sale who 361 reports a sales price less than the actual sales price is guilty 362 of a misdemeanor of the first degree, punishable as provided in 363 s. 775.082 or s. 775.083. The department shall collect or 364 attempt to collect from such party any delinquent sales taxes. 365 In addition, such party shall pay any tax due and any penalty 366 and interest assessed plus a penalty equal to twice the amount 367 of the additional tax owed. Notwithstanding any other provision 368 of law, the Department of Revenue may waive or compromise any 369 penalty imposed pursuant to this subparagraph. 370 2. This paragraph does not apply to the sale of a boat or 371 aircraft by or through a registered dealer under this chapter to 372 a purchaser who, at the time of taking delivery, is a 373 nonresident of this state, does not make his or her permanent 374 place of abode in this state, and is not engaged in carrying on 375 in this state any employment, trade, business, or profession in 376 which the boat or aircraft will be used in this state, or is a 377 corporation none of the officers or directors of which is a 378 resident of, or makes his or her permanent place of abode in, 379 this state, or is a noncorporate entity that has no individual 380 vested with authority to participate in the management, 381 direction, or control of the entity’s affairs who is a resident 382 of, or makes his or her permanent abode in, this state. For 383 purposes of this exemption, either a registered dealer acting on 384 his or her own behalf as seller, a registered dealer acting as 385 broker on behalf of a seller, or a registered dealer acting as 386 broker on behalf of the purchaser may be deemed to be the 387 selling dealer. This exemption shall not be allowed unless: 388 a. The purchaser removes a qualifying boat, as described in 389 sub-subparagraph f., from the state within 90 days after the 390 date of purchase or extension, or the purchaser removes a 391 nonqualifying boat or an aircraft from this state within 10 days 392 after the date of purchase or, when the boat or aircraft is 393 repaired or altered, within 20 days after completion of the 394 repairs or alterations; 395 b. The purchaser, within 30 days from the date of 396 departure, shall provide the department with written proof that 397 the purchaser licensed, registered, titled, or documented the 398 boat or aircraft outside the state. If such written proof is 399 unavailable, within 30 days the purchaser shall provide proof 400 that the purchaser applied for such license, title, 401 registration, or documentation. The purchaser shall forward to 402 the department proof of title, license, registration, or 403 documentation upon receipt; 404 c. The purchaser, within 10 days of removing the boat or 405 aircraft from Florida, shall furnish the department with proof 406 of removal in the form of receipts for fuel, dockage, slippage, 407 tie-down, or hangaring from outside of Florida. The information 408 so provided must clearly and specifically identify the boat or 409 aircraft; 410 d. The selling dealer, within 5 days of the date of sale, 411 shall provide to the department a copy of the sales invoice, 412 closing statement, bills of sale, and the original affidavit 413 signed by the purchaser attesting that he or she has read the 414 provisions of this section; 415 e. The seller makes a copy of the affidavit a part of his 416 or her record for as long as required by s. 213.35; and 417 f. Unless the nonresident purchaser of a boat of 5 net tons 418 of admeasurement or larger intends to remove the boat from this 419 state within 10 days after the date of purchase or when the boat 420 is repaired or altered, within 20 days after completion of the 421 repairs or alterations, the nonresident purchaser shall apply to 422 the selling dealer for a decal which authorizes 90 days after 423 the date of purchase for removal of the boat. The nonresident 424 purchaser of a qualifying boat may apply to the selling dealer 425 within 60 days after the date of purchase for an extension decal 426 that authorizes the boat to remain in this state for an 427 additional 90 days, but not more than a total of 180 days, 428 before the nonresident purchaser is required to pay the tax 429 imposed by this chapter. The department is authorized to issue 430 decals in advance to dealers. The number of decals issued in 431 advance to a dealer shall be consistent with the volume of the 432 dealer’s past sales of boats which qualify under this sub 433 subparagraph. The selling dealer or his or her agent shall mark 434 and affix the decals to qualifying boats in the manner 435 prescribed by the department, prior to delivery of the boat. 436 (I) The department is hereby authorized to charge dealers a 437 fee sufficient to recover the costs of decals issued, except the 438 extension decal shall cost $425. 439 (II) The proceeds from the sale of decals will be deposited 440 into the administrative trust fund. 441 (III) Decals shall display information to identify the boat 442 as a qualifying boat under this sub-subparagraph, including, but 443 not limited to, the decal’s date of expiration. 444 (IV) The department is authorized to require dealers who 445 purchase decals to file reports with the department and may 446 prescribe all necessary records by rule. All such records are 447 subject to inspection by the department. 448 (V) Any dealer or his or her agent who issues a decal 449 falsely, fails to affix a decal, mismarks the expiration date of 450 a decal, or fails to properly account for decals will be 451 considered prima facie to have committed a fraudulent act to 452 evade the tax and will be liable for payment of the tax plus a 453 mandatory penalty of 200 percent of the tax, and shall be liable 454 for fine and punishment as provided by law for a conviction of a 455 misdemeanor of the first degree, as provided in s. 775.082 or s. 456 775.083. 457 (VI) Any nonresident purchaser of a boat who removes a 458 decal prior to permanently removing the boat from the state, or 459 defaces, changes, modifies, or alters a decal in a manner 460 affecting its expiration date prior to its expiration, or who 461 causes or allows the same to be done by another, will be 462 considered prima facie to have committed a fraudulent act to 463 evade the tax and will be liable for payment of the tax plus a 464 mandatory penalty of 200 percent of the tax, and shall be liable 465 for fine and punishment as provided by law for a conviction of a 466 misdemeanor of the first degree, as provided in s. 775.082 or s. 467 775.083. 468 (VII) The department is authorized to adopt rules necessary 469 to administer and enforce this subparagraph and to publish the 470 necessary forms and instructions. 471 (VIII) The department is hereby authorized to adopt 472 emergency rules pursuant to s. 120.54(4) to administer and 473 enforce the provisions of this subparagraph. 474 475 If the purchaser fails to remove the qualifying boat from this 476 state within the maximum 180 days after purchase or a 477 nonqualifying boat or an aircraft from this state within 10 days 478 after purchase or, when the boat or aircraft is repaired or 479 altered, within 20 days after completion of such repairs or 480 alterations, or permits the boat or aircraft to return to this 481 state within 6 months from the date of departure, except as 482 provided in s. 212.08(7)(ggg), or if the purchaser fails to 483 furnish the department with any of the documentation required by 484 this subparagraph within the prescribed time period, the 485 purchaser shall be liable for use tax on the cost price of the 486 boat or aircraft and, in addition thereto, payment of a penalty 487 to the Department of Revenue equal to the tax payable. This 488 penalty shall be in lieu of the penalty imposed by s. 212.12(2). 489 The maximum 180-day period following the sale of a qualifying 490 boat tax-exempt to a nonresident may not be tolled for any 491 reason. 492 (b) At the rate of 8.56percent of the cost price of each 493 item or article of tangible personal property when the same is 494 not sold but is used, consumed, distributed, or stored for use 495 or consumption in this state; however, for tangible property 496 originally purchased exempt from tax for use exclusively for 497 lease and which is converted to the owner’s own use, tax may be 498 paid on the fair market value of the property at the time of 499 conversion. If the fair market value of the property cannot be 500 determined, use tax at the time of conversion shall be based on 501 the owner’s acquisition cost. Under no circumstances may the 502 aggregate amount of sales tax from leasing the property and use 503 tax due at the time of conversion be less than the total sales 504 tax that would have been due on the original acquisition cost 505 paid by the owner. 506 (c) At the rate of 8.56percent of the gross proceeds 507 derived from the lease or rental of tangible personal property, 508 as defined herein; however, the following special provisions 509 apply to the lease or rental of motor vehicles: 510 1. When a motor vehicle is leased or rented for a period of 511 less than 12 months: 512 a. If the motor vehicle is rented in Florida, the entire 513 amount of such rental is taxable, even if the vehicle is dropped 514 off in another state. 515 b. If the motor vehicle is rented in another state and 516 dropped off in Florida, the rental is exempt from Florida tax. 517 2. Except as provided in subparagraph 3., for the lease or 518 rental of a motor vehicle for a period of not less than 12 519 months, sales tax is due on the lease or rental payments if the 520 vehicle is registered in this state; provided, however, that no 521 tax shall be due if the taxpayer documents use of the motor 522 vehicle outside this state and tax is being paid on the lease or 523 rental payments in another state. 524 3. The tax imposed by this chapter does not apply to the 525 lease or rental of a commercial motor vehicle as defined in s. 526 316.003(66)(a) to one lessee or rentee for a period of not less 527 than 12 months when tax was paid on the purchase price of such 528 vehicle by the lessor. To the extent tax was paid with respect 529 to the purchase of such vehicle in another state, territory of 530 the United States, or the District of Columbia, the Florida tax 531 payable shall be reduced in accordance with the provisions of s. 532 212.06(7). This subparagraph shall only be available when the 533 lease or rental of such property is an established business or 534 part of an established business or the same is incidental or 535 germane to such business. 536 (d) At the rate of 8.56percent of the lease or rental 537 price paid by a lessee or rentee, or contracted or agreed to be 538 paid by a lessee or rentee, to the owner of the tangible 539 personal property. 540 (e)1. At the rate of 8.56percent on charges for: 541 a. Prepaid calling arrangements. The tax on charges for 542 prepaid calling arrangements shall be collected at the time of 543 sale and remitted by the selling dealer. 544 (I) “Prepaid calling arrangement” means the separately 545 stated retail sale by advance payment of communications services 546 that consist exclusively of telephone calls originated by using 547 an access number, authorization code, or other means that may be 548 manually, electronically, or otherwise entered and that are sold 549 in predetermined units or dollars whose number declines with use 550 in a known amount. 551 (II) If the sale or recharge of the prepaid calling 552 arrangement does not take place at the dealer’s place of 553 business, it shall be deemed to take place at the customer’s 554 shipping address or, if no item is shipped, at the customer’s 555 address or the location associated with the customer’s mobile 556 telephone number. 557 (III) The sale or recharge of a prepaid calling arrangement 558 shall be treated as a sale of tangible personal property for 559 purposes of this chapter, whether or not a tangible item 560 evidencing such arrangement is furnished to the purchaser, and 561 such sale within this state subjects the selling dealer to the 562 jurisdiction of this state for purposes of this subsection. 563 b. The installation of telecommunication and telegraphic 564 equipment. 565 c. Electrical power or energy, except that the tax rate for 566 charges for electrical power or energy is 9.57percent. 567 2. The provisions of s. 212.17(3), regarding credit for tax 568 paid on charges subsequently found to be worthless, shall be 569 equally applicable to any tax paid under the provisions of this 570 section on charges for prepaid calling arrangements, 571 telecommunication or telegraph services, or electric power 572 subsequently found to be uncollectible. The word “charges” in 573 this paragraph does not include any excise or similar tax levied 574 by the Federal Government, any political subdivision of the 575 state, or any municipality upon the purchase, sale, or recharge 576 of prepaid calling arrangements or upon the purchase or sale of 577 telecommunication, television system program, or telegraph 578 service or electric power, which tax is collected by the seller 579 from the purchaser. 580 (f) At the rate of 8.56percent on the sale, rental, use, 581 consumption, or storage for use in this state of machines and 582 equipment, and parts and accessories therefor, used in 583 manufacturing, processing, compounding, producing, mining, or 584 quarrying personal property for sale or to be used in furnishing 585 communications, transportation, or public utility services. 586 (g)1. At the rate of 8.56percent on the retail price of 587 newspapers and magazines sold or used in Florida. 588 2. Notwithstanding other provisions of this chapter, 589 inserts of printed materials which are distributed with a 590 newspaper or magazine are a component part of the newspaper or 591 magazine, and neither the sale nor use of such inserts is 592 subject to tax when: 593 a. Printed by a newspaper or magazine publisher or 594 commercial printer and distributed as a component part of a 595 newspaper or magazine, which means that the items after being 596 printed are delivered directly to a newspaper or magazine 597 publisher by the printer for inclusion in editions of the 598 distributed newspaper or magazine; 599 b. Such publications are labeled as part of the designated 600 newspaper or magazine publication into which they are to be 601 inserted; and 602 c. The purchaser of the insert presents a resale 603 certificate to the vendor stating that the inserts are to be 604 distributed as a component part of a newspaper or magazine. 605 (h)1. A tax is imposed at the rate of 6.54percent on the 606 charges for the use of coin-operated amusement machines. The tax 607 shall be calculated by dividing the gross receipts from such 608 charges for the applicable reporting period by a divisor, 609 determined as provided in this subparagraph, to compute gross 610 taxable sales, and then subtracting gross taxable sales from 611 gross receipts to arrive at the amount of tax due. For counties 612 that do not impose a discretionary sales surtax, the divisor is 613 equal to 1.0651.04; for counties that impose a 0.5 percent 614 discretionary sales surtax, the divisor is equal to 1.071.045; 615 for counties that impose a 1 percent discretionary sales surtax, 616 the divisor is equal to 1.0751.050; and for counties that 617 impose a 2 percent sales surtax, the divisor is equal to 1.085 6181.060. If a county imposes a discretionary sales surtax that is 619 not listed in this subparagraph, the department shall make the 620 applicable divisor available in an electronic format or 621 otherwise. Additional divisors shall bear the same mathematical 622 relationship to the next higher and next lower divisors as the 623 new surtax rate bears to the next higher and next lower surtax 624 rates for which divisors have been established. When a machine 625 is activated by a slug, token, coupon, or any similar device 626 which has been purchased, the tax is on the price paid by the 627 user of the device for such device. 628 2. As used in this paragraph, the term “operator” means any 629 person who possesses a coin-operated amusement machine for the 630 purpose of generating sales through that machine and who is 631 responsible for removing the receipts from the machine. 632 a. If the owner of the machine is also the operator of it, 633 he or she shall be liable for payment of the tax without any 634 deduction for rent or a license fee paid to a location owner for 635 the use of any real property on which the machine is located. 636 b. If the owner or lessee of the machine is also its 637 operator, he or she shall be liable for payment of the tax on 638 the purchase or lease of the machine, as well as the tax on 639 sales generated through the machine. 640 c. If the proprietor of the business where the machine is 641 located does not own the machine, he or she shall be deemed to 642 be the lessee and operator of the machine and is responsible for 643 the payment of the tax on sales, unless such responsibility is 644 otherwise provided for in a written agreement between him or her 645 and the machine owner. 646 3.a. An operator of a coin-operated amusement machine may 647 not operate or cause to be operated in this state any such 648 machine until the operator has registered with the department 649 and has conspicuously displayed an identifying certificate 650 issued by the department. The identifying certificate shall be 651 issued by the department upon application from the operator. The 652 identifying certificate shall include a unique number, and the 653 certificate shall be permanently marked with the operator’s 654 name, the operator’s sales tax number, and the maximum number of 655 machines to be operated under the certificate. An identifying 656 certificate shall not be transferred from one operator to 657 another. The identifying certificate must be conspicuously 658 displayed on the premises where the coin-operated amusement 659 machines are being operated. 660 b. The operator of the machine must obtain an identifying 661 certificate before the machine is first operated in the state 662 and by July 1 of each year thereafter. The annual fee for each 663 certificate shall be based on the number of machines identified 664 on the application times $30 and is due and payable upon 665 application for the identifying device. The application shall 666 contain the operator’s name, sales tax number, business address 667 where the machines are being operated, and the number of 668 machines in operation at that place of business by the operator. 669 No operator may operate more machines than are listed on the 670 certificate. A new certificate is required if more machines are 671 being operated at that location than are listed on the 672 certificate. The fee for the new certificate shall be based on 673 the number of additional machines identified on the application 674 form times $30. 675 c. A penalty of $250 per machine is imposed on the operator 676 for failing to properly obtain and display the required 677 identifying certificate. A penalty of $250 is imposed on the 678 lessee of any machine placed in a place of business without a 679 proper current identifying certificate. Such penalties shall 680 apply in addition to all other applicable taxes, interest, and 681 penalties. 682 d. Operators of coin-operated amusement machines must 683 obtain a separate sales and use tax certificate of registration 684 for each county in which such machines are located. One sales 685 and use tax certificate of registration is sufficient for all of 686 the operator’s machines within a single county. 687 4. The provisions of this paragraph do not apply to coin 688 operated amusement machines owned and operated by churches or 689 synagogues. 690 5. In addition to any other penalties imposed by this 691 chapter, a person who knowingly and willfully violates any 692 provision of this paragraph commits a misdemeanor of the second 693 degree, punishable as provided in s. 775.082 or s. 775.083. 694 6. The department may adopt rules necessary to administer 695 the provisions of this paragraph. 696 (i)1. At the rate of 8.56percent on charges for all: 697 a. Detective, burglar protection, and other protection 698 services (NAICS National Numbers 561611, 561612, 561613, and 699 561621). Any law enforcement officer, as defined in s. 943.10, 700 who is performing approved duties as determined by his or her 701 local law enforcement agency in his or her capacity as a law 702 enforcement officer, and who is subject to the direct and 703 immediate command of his or her law enforcement agency, and in 704 the law enforcement officer’s uniform as authorized by his or 705 her law enforcement agency, is performing law enforcement and 706 public safety services and is not performing detective, burglar 707 protection, or other protective services, if the law enforcement 708 officer is performing his or her approved duties in a 709 geographical area in which the law enforcement officer has 710 arrest jurisdiction. Such law enforcement and public safety 711 services are not subject to tax irrespective of whether the duty 712 is characterized as “extra duty,” “off-duty,” or “secondary 713 employment,” and irrespective of whether the officer is paid 714 directly or through the officer’s agency by an outside source. 715 The term “law enforcement officer” includes full-time or part 716 time law enforcement officers, and any auxiliary law enforcement 717 officer, when such auxiliary law enforcement officer is working 718 under the direct supervision of a full-time or part-time law 719 enforcement officer. 720 b. Nonresidential cleaning, excluding cleaning of the 721 interiors of transportation equipment, and nonresidential 722 building pest control services (NAICS National Numbers 561710 723 and 561720). 724 2. As used in this paragraph, “NAICS” means those 725 classifications contained in the North American Industry 726 Classification System, as published in 2007 by the Office of 727 Management and Budget, Executive Office of the President. 728 3. Charges for detective, burglar protection, and other 729 protection security services performed in this state but used 730 outside this state are exempt from taxation. Charges for 731 detective, burglar protection, and other protection security 732 services performed outside this state and used in this state are 733 subject to tax. 734 4. If a transaction involves both the sale or use of a 735 service taxable under this paragraph and the sale or use of a 736 service or any other item not taxable under this chapter, the 737 consideration paid must be separately identified and stated with 738 respect to the taxable and exempt portions of the transaction or 739 the entire transaction shall be presumed taxable. The burden 740 shall be on the seller of the service or the purchaser of the 741 service, whichever applicable, to overcome this presumption by 742 providing documentary evidence as to which portion of the 743 transaction is exempt from tax. The department is authorized to 744 adjust the amount of consideration identified as the taxable and 745 exempt portions of the transaction; however, a determination 746 that the taxable and exempt portions are inaccurately stated and 747 that the adjustment is applicable must be supported by 748 substantial competent evidence. 749 5. Each seller of services subject to sales tax pursuant to 750 this paragraph shall maintain a monthly log showing each 751 transaction for which sales tax was not collected because the 752 services meet the requirements of subparagraph 3. for out-of 753 state use. The log must identify the purchaser’s name, location 754 and mailing address, and federal employer identification number, 755 if a business, or the social security number, if an individual, 756 the service sold, the price of the service, the date of sale, 757 the reason for the exemption, and the sales invoice number. The 758 monthly log shall be maintained pursuant to the same 759 requirements and subject to the same penalties imposed for the 760 keeping of similar records pursuant to this chapter. 761 (j)1. Notwithstanding any other provision of this chapter, 762 there is hereby levied a tax on the sale, use, consumption, or 763 storage for use in this state of any coin or currency, whether 764 in circulation or not, when such coin or currency: 765 a. Is not legal tender; 766 b. If legal tender, is sold, exchanged, or traded at a rate 767 in excess of its face value; or 768 c. Is sold, exchanged, or traded at a rate based on its 769 precious metal content. 770 2. Such tax shall be at a rate of 8.56percent of the 771 price at which the coin or currency is sold, exchanged, or 772 traded, except that, with respect to a coin or currency which is 773 legal tender of the United States and which is sold, exchanged, 774 or traded, such tax shall not be levied. 775 3. There are exempt from this tax exchanges of coins or 776 currency which are in general circulation in, and legal tender 777 of, one nation for coins or currency which are in general 778 circulation in, and legal tender of, another nation when 779 exchanged solely for use as legal tender and at an exchange rate 780 based on the relative value of each as a medium of exchange. 781 4. With respect to any transaction that involves the sale 782 of coins or currency taxable under this paragraph in which the 783 taxable amount represented by the sale of such coins or currency 784 exceeds $500, the entire amount represented by the sale of such 785 coins or currency is exempt from the tax imposed under this 786 paragraph. The dealer must maintain proper documentation, as 787 prescribed by rule of the department, to identify that portion 788 of a transaction which involves the sale of coins or currency 789 and is exempt under this subparagraph. 790 (k) At the rate of 8.56percent of the sales price of each 791 gallon of diesel fuel not taxed under chapter 206 purchased for 792 use in a vessel. 793 (l) Florists located in this state are liable for sales tax 794 on sales to retail customers regardless of where or by whom the 795 items sold are to be delivered. Florists located in this state 796 are not liable for sales tax on payments received from other 797 florists for items delivered to customers in this state. 798 (m) Operators of game concessions or other concessionaires 799 who customarily award tangible personal property as prizes may, 800 in lieu of paying tax on the cost price of such property, pay 801 tax on 25 percent of the gross receipts from such concession 802 activity. 803 Section 6. Subsection (2) of section 212.0501, Florida 804 Statutes, is amended to read: 805 212.0501 Tax on diesel fuel for business purposes; 806 purchase, storage, and use.— 807 (2) Each person who purchases diesel fuel for consumption, 808 use, or storage by a trade or business shall register as a 809 dealer and remit a use tax, at the rate of 8.56percent, on the 810 total cost price of diesel fuel consumed. 811 Section 7. Subsection (2) of section 212.0506, Florida 812 Statutes, is amended to read: 813 212.0506 Taxation of service warranties.— 814 (2) For exercising such privilege, a tax is levied on each 815 taxable transaction or incident, which tax is due and payable at 816 the rate of 8.56percent on the total consideration received or 817 to be received by any person for issuing and delivering any 818 service warranty. 819 Section 8. Paragraph (a) of subsection (1) of section 820 212.06, Florida Statutes, is amended to read: 821 212.06 Sales, storage, use tax; collectible from dealers; 822 “dealer” defined; dealers to collect from purchasers; 823 legislative intent as to scope of tax.— 824 (1)(a) The aforesaid tax at the rate of 8.56percent of 825 the retail sales price as of the moment of sale, 8.56percent 826 of the cost price as of the moment of purchase, or 8.56percent 827 of the cost price as of the moment of commingling with the 828 general mass of property in this state, as the case may be, 829 shall be collectible from all dealers as herein defined on the 830 sale at retail, the use, the consumption, the distribution, and 831 the storage for use or consumption in this state of tangible 832 personal property or services taxable under this chapter. The 833 full amount of the tax on a credit sale, installment sale, or 834 sale made on any kind of deferred payment plan shall be due at 835 the moment of the transaction in the same manner as on a cash 836 sale. 837 Section 9. Paragraph (c) of subsection (11) of section 838 212.08, Florida Statutes, is amended to read: 839 212.08 Sales, rental, use, consumption, distribution, and 840 storage tax; specified exemptions.—The sale at retail, the 841 rental, the use, the consumption, the distribution, and the 842 storage to be used or consumed in this state of the following 843 are hereby specifically exempt from the tax imposed by this 844 chapter. 845 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.— 846 (c) The maximum tax collectible under this subsection may 847 not exceed 8.56percent of the sales price of such aircraft. No 848 Florida tax may be imposed on the sale of such aircraft if the 849 state in which the aircraft will be domiciled does not allow 850 Florida sales or use tax to be credited against its sales or use 851 tax. Furthermore, no tax may be imposed on the sale of such 852 aircraft if the state in which the aircraft will be domiciled 853 has enacted a sales and use tax exemption for flyable aircraft 854 or if the aircraft will be domiciled outside the United States. 855 Section 10. Subsections (9), (10), and (11) of section 856 212.12, Florida Statutes, are amended to read: 857 212.12 Dealer’s credit for collecting tax; penalties for 858 noncompliance; powers of Department of Revenue in dealing with 859 delinquents; brackets applicable to taxable transactions; 860 records required.— 861 (9) Taxes imposed by this chapter upon the privilege of the 862 use, consumption, storage for consumption, or sale of tangible 863 personal property, admissions, license fees, rentals, 864 communication services, and upon the sale or use of services as 865 herein taxed shall be collected upon the basis of an addition of 866 the tax imposed by this chapter to the total price of such 867 admissions, license fees, rentals, communication or other 868 services, or sale price of such article or articles that are 869 purchased, sold, or leased at any one time by or to a customer 870 or buyer; the dealer, or person charged herein, is required to 871 pay a privilege tax in the amount of the tax imposed by this 872 chapter on the total of his or her gross sales of tangible 873 personal property, admissions, license fees, rentals, and 874 communication services or to collect a tax upon the sale or use 875 of services, and such person or dealer shall add the tax imposed 876 by this chapter to the price, license fee, rental, or 877 admissions, and communication or other services and collect the 878 total sum from the purchaser, admittee, licensee, lessee, or 879 consumer. The department shall make available in an electronic 880 format or otherwise the tax amounts and the following brackets 881 applicable to all transactions taxable at the rate of 8.56882 percent: 883 (a) On single sales of less than 10 cents, no tax shall be 884 added. 885 (b) On single sales in amounts from 10 cents to 1116886 cents, both inclusive, 1 cent shall be added for taxes. 887 (c) On sales in amounts from 1217cents to 2333cents, 888 both inclusive, 2 cents shall be added for taxes. 889 (d) On sales in amounts from 2434cents to 3550cents, 890 both inclusive, 3 cents shall be added for taxes. 891 (e) On sales in amounts from 3651cents to 4766cents, 892 both inclusive, 4 cents shall be added for taxes. 893 (f) On sales in amounts from 4867cents to 5983cents, 894 both inclusive, 5 cents shall be added for taxes. 895 (g) On sales in amounts from 6084cents to 71 cents$1, 896 both inclusive, 6 cents shall be added for taxes. 897 (h) On sales in amounts from 72 cents to 83 cents, both 898 inclusive, 7 cents shall be added for taxes. 899 (i) On sales in amounts from 84 cents to $1, both 900 inclusive, 8 cents shall be added for taxes. 901 (j)(h)On sales in amounts of more than $1, 8.56percent 902 shall be charged upon each dollar of price, plus the appropriate 903 bracket charge upon any fractional part of a dollar. 904 (10) In counties which have adopted a discretionary sales 905 surtax at the rate of 1 percent, the department shall make 906 available in an electronic format or otherwise the tax amounts 907 and the following brackets applicable to all taxable 908 transactions that would otherwise have been transactions taxable 909 at the rate of 8.56percent: 910 (a) On single sales of less than 10 cents, no tax shall be 911 added. 912 (b) On single sales in amounts from 10 cents to 1114913 cents, both inclusive, 1 cent shall be added for taxes. 914 (c) On sales in amounts from 1215cents to 2228cents, 915 both inclusive, 2 cents shall be added for taxes. 916 (d) On sales in amounts from 2329cents to 3342cents, 917 both inclusive, 3 cents shall be added for taxes. 918 (e) On sales in amounts from 3443cents to 4457cents, 919 both inclusive, 4 cents shall be added for taxes. 920 (f) On sales in amounts from 4558cents to 5571cents, 921 both inclusive, 5 cents shall be added for taxes. 922 (g) On sales in amounts from 5672cents to 6685cents, 923 both inclusive, 6 cents shall be added for taxes. 924 (h) On sales in amounts from 6786cents to 77 cents$1, 925 both inclusive, 7 cents shall be added for taxes. 926 (i) On sales in amounts from 78 cents to 88 cents, both 927 inclusive, 8 cents shall be added for taxes. 928 (j) On sales in amounts from 89 cents to $1, both 929 inclusive, 9 cents shall be added for taxes. 930 (k)(i)On sales in amounts from $1 up to, and including, 931 the first $5,000 in price, 9.57percent shall be charged upon 932 each dollar of price, plus the appropriate bracket charge upon 933 any fractional part of a dollar. 934 (l)(j)On sales in amounts of more than $5,000 in price, 935 9.57percent shall be added upon the first $5,000 in price, and 936 8.56percent shall be added upon each dollar of price in excess 937 of the first $5,000 in price, plus the bracket charges upon any 938 fractional part of a dollar as provided for in subsection (9). 939 (11) The department shall make available in an electronic 940 format or otherwise the tax amounts and brackets applicable to 941 all taxable transactions that occur in counties that have a 942 surtax at a rate other than 1 percent which transactions would 943 otherwise have been transactions taxable at the rate of 8.56944 percent. Likewise, the department shall make available in an 945 electronic format or otherwise the tax amounts and brackets 946 applicable to transactions taxable at 9.57percent pursuant to 947 s. 212.05(1)(e) and on transactions which would otherwise have 948 been so taxable in counties which have adopted a discretionary 949 sales surtax. 950 Section 11. Subsection (6) of section 212.20, Florida 951 Statutes, is amended to read: 952 212.20 Funds collected, disposition; additional powers of 953 department; operational expense; refund of taxes adjudicated 954 unconstitutionally collected.— 955 (6) Distribution of all proceeds under this chapter and s. 956 202.18(1)(b) and (2)(b) shall be as follows: 957 (a) Proceeds from the convention development taxes 958 authorized under s. 212.0305 shall be reallocated to the 959 Convention Development Tax Clearing Trust Fund. 960 (b) Proceeds from discretionary sales surtaxes imposed 961 pursuant to ss. 212.054 and 212.055 shall be reallocated to the 962 Discretionary Sales Surtax Clearing Trust Fund. 963 (c) Proceeds from the fees imposed under ss. 212.05(1)(h)3. 964 and 212.18(3) shall remain with the General Revenue Fund. 965 (d) Twenty-nine percent of the proceeds of all other taxes 966 and fees imposed pursuant to this chapter shall be reserved in 967 the General Revenue Fund exclusively as a replacement for funds 968 previously generated by the required local effort for all school 969 districts and shall be allocated for school district funding in 970 accordance with the formula provided in s. 1011.62(4). 971 (e)(d)The proceeds of all other taxes and fees imposed 972 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) 973 and (2)(b) shall be distributed as follows: 974 1. In any fiscal year, the greater of $500 million, minus 975 an amount equal to 4.6 percent of the proceeds of the taxes 976 collected pursuant to chapter 201, or 5.2 percent of all other 977 taxes and fees imposed pursuant to this chapter or remitted 978 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in 979 monthly installments into the General Revenue Fund. 980 2. After the distribution under subparagraph 1., 8.814 981 percent of the amount remitted by a sales tax dealer located 982 within a participating county pursuant to s. 218.61 shall be 983 transferred into the Local Government Half-cent Sales Tax 984 Clearing Trust Fund. Beginning July 1, 2003, the amount to be 985 transferred shall be reduced by 0.1 percent, and the department 986 shall distribute this amount to the Public Employees Relations 987 Commission Trust Fund less $5,000 each month, which shall be 988 added to the amount calculated in subparagraph 3. and 989 distributed accordingly. 990 3. After the distribution under subparagraphs 1. and 2., 991 0.095 percent shall be transferred to the Local Government Half 992 cent Sales Tax Clearing Trust Fund and distributed pursuant to 993 s. 218.65. 994 4. After the distributions under subparagraphs 1., 2., and 995 3., 2.0440 percent of the available proceeds shall be 996 transferred monthly to the Revenue Sharing Trust Fund for 997 Counties pursuant to s. 218.215. 998 5. After the distributions under subparagraphs 1., 2., and 999 3., 1.3409 percent of the available proceeds shall be 1000 transferred monthly to the Revenue Sharing Trust Fund for 1001 Municipalities pursuant to s. 218.215. If the total revenue to 1002 be distributed pursuant to this subparagraph is at least as 1003 great as the amount due from the Revenue Sharing Trust Fund for 1004 Municipalities and the former Municipal Financial Assistance 1005 Trust Fund in state fiscal year 1999-2000, no municipality shall 1006 receive less than the amount due from the Revenue Sharing Trust 1007 Fund for Municipalities and the former Municipal Financial 1008 Assistance Trust Fund in state fiscal year 1999-2000. If the 1009 total proceeds to be distributed are less than the amount 1010 received in combination from the Revenue Sharing Trust Fund for 1011 Municipalities and the former Municipal Financial Assistance 1012 Trust Fund in state fiscal year 1999-2000, each municipality 1013 shall receive an amount proportionate to the amount it was due 1014 in state fiscal year 1999-2000. 1015 6. Of the remaining proceeds: 1016 a. In each fiscal year, the sum of $29,915,500 shall be 1017 divided into as many equal parts as there are counties in the 1018 state, and one part shall be distributed to each county. The 1019 distribution among the several counties must begin each fiscal 1020 year on or before January 5th and continue monthly for a total 1021 of 4 months. If a local or special law required that any moneys 1022 accruing to a county in fiscal year 1999-2000 under the then 1023 existing provisions of s. 550.135 be paid directly to the 1024 district school board, special district, or a municipal 1025 government, such payment must continue until the local or 1026 special law is amended or repealed. The state covenants with 1027 holders of bonds or other instruments of indebtedness issued by 1028 local governments, special districts, or district school boards 1029 before July 1, 2000, that it is not the intent of this 1030 subparagraph to adversely affect the rights of those holders or 1031 relieve local governments, special districts, or district school 1032 boards of the duty to meet their obligations as a result of 1033 previous pledges or assignments or trusts entered into which 1034 obligated funds received from the distribution to county 1035 governments under then-existing s. 550.135. This distribution 1036 specifically is in lieu of funds distributed under s. 550.135 1037 before July 1, 2000. 1038 b. The department shall distribute $166,667 monthly 1039 pursuant to s. 288.1162 to each applicant certified as a 1040 facility for a new or retained professional sports franchise 1041 pursuant to s. 288.1162. Up to $41,667 shall be distributed 1042 monthly by the department to each certified applicant as defined 1043 in s. 288.11621 for a facility for a spring training franchise. 1044 However, not more than $416,670 may be distributed monthly in 1045 the aggregate to all certified applicants for facilities for 1046 spring training franchises. Distributions begin 60 days after 1047 such certification and continue for not more than 30 years, 1048 except as otherwise provided in s. 288.11621. A certified 1049 applicant identified in this sub-subparagraph may not receive 1050 more in distributions than expended by the applicant for the 1051 public purposes provided for in s. 288.1162(5) or s. 1052 288.11621(3). 1053 c. Beginning 30 days after notice by the Office of Tourism, 1054 Trade, and Economic Development to the Department of Revenue 1055 that an applicant has been certified as the professional golf 1056 hall of fame pursuant to s. 288.1168 and is open to the public, 1057 $166,667 shall be distributed monthly, for up to 300 months, to 1058 the applicant. 1059 d. Beginning 30 days after notice by the Office of Tourism, 1060 Trade, and Economic Development to the Department of Revenue 1061 that the applicant has been certified as the International Game 1062 Fish Association World Center facility pursuant to s. 288.1169, 1063 and the facility is open to the public, $83,333 shall be 1064 distributed monthly, for up to 168 months, to the applicant. 1065 This distribution is subject to reduction pursuant to s. 1066 288.1169. A lump sum payment of $999,996 shall be made, after 1067 certification and before July 1, 2000. 1068 7. All other proceeds must remain in the General Revenue 1069 Fund. 1070 Section 12. Paragraph (a) of subsection (5) of section 1071 11.45, Florida Statutes, is amended to read: 1072 11.45 Definitions; duties; authorities; reports; rules.— 1073 (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.— 1074 (a) The Legislative Auditing Committee shall direct the 1075 Auditor General to make an audit of any municipality whenever 1076 petitioned to do so by at least 20 percent of the registered 1077 electors in the last general election of that municipality 1078 pursuant to this subsection. The supervisor of elections of the 1079 county in which the municipality is located shall certify 1080 whether or not the petition contains the signatures of at least 1081 20 percent of the registered electors of the municipality. After 1082 the completion of the audit, the Auditor General shall determine 1083 whether the municipality has the fiscal resources necessary to 1084 pay the cost of the audit. The municipality shall pay the cost 1085 of the audit within 90 days after the Auditor General’s 1086 determination that the municipality has the available resources. 1087 If the municipality fails to pay the cost of the audit, the 1088 Department of Revenue shall, upon certification of the Auditor 1089 General, withhold from that portion of the distribution pursuant 1090 to s. 212.20(6)(e)(d)5. which is distributable to such 1091 municipality, a sum sufficient to pay the cost of the audit and 1092 shall deposit that sum into the General Revenue Fund of the 1093 state. 1094 Section 13. Paragraph (b) of subsection (2) of section 1095 202.18, Florida Statutes, is amended to read: 1096 202.18 Allocation and disposition of tax proceeds.—The 1097 proceeds of the communications services taxes remitted under 1098 this chapter shall be treated as follows: 1099 (2) The proceeds of the taxes remitted under s. 1100 202.12(1)(b) shall be divided as follows: 1101 (b) Sixty-three percent of the remainder shall be allocated 1102 to the state and distributed pursuant to s. 212.20(6), except 1103 that the proceeds allocated pursuant to s. 212.20(6)(e)(d)2. 1104 shall be prorated to the participating counties in the same 1105 proportion as that month’s collection of the taxes and fees 1106 imposed pursuant to chapter 212 and paragraph (1)(b). 1107 Section 14. Subsection (3) of section 218.245, Florida 1108 Statutes, is amended to read: 1109 218.245 Revenue sharing; apportionment.— 1110 (3) Revenues attributed to the increase in distribution to 1111 the Revenue Sharing Trust Fund for Municipalities pursuant to s. 1112 212.20(6)(e)(d)5. from 1.0715 percent to 1.3409 percent provided 1113 in chapter 2003-402, Laws of Florida, shall be distributed to 1114 each eligible municipality and any unit of local government that 1115 is consolidated as provided by s. 9, Art. VIII of the State 1116 Constitution of 1885, as preserved by s. 6(e), Art. VIII, 1968 1117 revised constitution, as follows: each eligible local 1118 government’s allocation shall be based on the amount it received 1119 from the half-cent sales tax under s. 218.61 in the prior state 1120 fiscal year divided by the total receipts under s. 218.61 in the 1121 prior state fiscal year for all eligible local governments. 1122 However, for the purpose of calculating this distribution, the 1123 amount received from the half-cent sales tax under s. 218.61 in 1124 the prior state fiscal year by a unit of local government which 1125 is consolidated as provided by s. 9, Art. VIII of the State 1126 Constitution of 1885, as amended, and as preserved by s. 6(e), 1127 Art. VIII, of the Constitution as revised in 1968, shall be 1128 reduced by 50 percent for such local government and for the 1129 total receipts. For eligible municipalities that began 1130 participating in the allocation of half-cent sales tax under s. 1131 218.61 in the previous state fiscal year, their annual receipts 1132 shall be calculated by dividing their actual receipts by the 1133 number of months they participated, and the result multiplied by 1134 12. 1135 Section 15. Subsections (5), (6), and (7) of section 1136 218.65, Florida Statutes, are amended to read: 1137 218.65 Emergency distribution.— 1138 (5) At the beginning of each fiscal year, the Department of 1139 Revenue shall calculate a base allocation for each eligible 1140 county equal to the difference between the current per capita 1141 limitation times the county’s population, minus prior year 1142 ordinary distributions to the county pursuant to ss. 1143 212.20(6)(e)(d)2., 218.61, and 218.62. If moneys deposited into 1144 the Local Government Half-cent Sales Tax Clearing Trust Fund 1145 pursuant to s. 212.20(6)(e)(d)3., excluding moneys appropriated 1146 for supplemental distributions pursuant to subsection (8), for 1147 the current year are less than or equal to the sum of the base 1148 allocations, each eligible county shall receive a share of the 1149 appropriated amount proportional to its base allocation. If the 1150 deposited amount exceeds the sum of the base allocations, each 1151 county shall receive its base allocation, and the excess 1152 appropriated amount, less any amounts distributed under 1153 subsection (6), shall be distributed equally on a per capita 1154 basis among the eligible counties. 1155 (6) If moneys deposited in the Local Government Half-cent 1156 Sales Tax Clearing Trust Fund pursuant to s. 212.20(6)(e)(d)3. 1157 exceed the amount necessary to provide the base allocation to 1158 each eligible county, the moneys in the trust fund may be used 1159 to provide a transitional distribution, as specified in this 1160 subsection, to certain counties whose population has increased. 1161 The transitional distribution shall be made available to each 1162 county that qualified for a distribution under subsection (2) in 1163 the prior year but does not, because of the requirements of 1164 paragraph (2)(a), qualify for a distribution in the current 1165 year. Beginning on July 1 of the year following the year in 1166 which the county no longer qualifies for a distribution under 1167 subsection (2), the county shall receive two-thirds of the 1168 amount received in the prior year, and beginning July 1 of the 1169 second year following the year in which the county no longer 1170 qualifies for a distribution under subsection (2), the county 1171 shall receive one-third of the amount it received in the last 1172 year it qualified for the distribution under subsection (2). If 1173 insufficient moneys are available in the Local Government Half 1174 cent Sales Tax Clearing Trust Fund to fully provide such a 1175 transitional distribution to each county that meets the 1176 eligibility criteria in this section, each eligible county shall 1177 receive a share of the available moneys proportional to the 1178 amount it would have received had moneys been sufficient to 1179 fully provide such a transitional distribution to each eligible 1180 county. 1181 (7) There is hereby annually appropriated from the Local 1182 Government Half-cent Sales Tax Clearing Trust Fund the 1183 distribution provided in s. 212.20(6)(e)(d)3. to be used for 1184 emergency and supplemental distributions pursuant to this 1185 section. 1186 Section 16. Subsection (3) of section 288.11621, Florida 1187 Statutes, is amended to read: 1188 288.11621 Spring training baseball franchises.— 1189 (3) USE OF FUNDS.— 1190 (a) A certified applicant may use funds provided under s. 1191 212.20(6)(e)(d)6.b. only to: 1192 1. Serve the public purpose of acquiring, constructing, 1193 reconstructing, or renovating a facility for a spring training 1194 franchise. 1195 2. Pay or pledge for the payment of debt service on, or to 1196 fund debt service reserve funds, arbitrage rebate obligations, 1197 or other amounts payable with respect thereto, bonds issued for 1198 the acquisition, construction, reconstruction, or renovation of 1199 such facility, or for the reimbursement of such costs or the 1200 refinancing of bonds issued for such purposes. 1201 3. Assist in the relocation of a spring training franchise 1202 from one unit of local government to another only if the 1203 governing board of the current host local government by a 1204 majority vote agrees to relocation. 1205 (b) State funds awarded to a certified applicant for a 1206 facility for a spring training franchise may not be used to 1207 subsidize facilities that are privately owned, maintained, and 1208 used only by a spring training franchise. 1209 (c) The Department of Revenue may not distribute funds to 1210 an applicant certified on or after July 1, 2010, until it 1211 receives notice from the office that the certified applicant has 1212 encumbered funds under subparagraph (a)2. 1213 (d)1. All certified applicants must place unexpended state 1214 funds received pursuant to s. 212.20(6)(e)(d)6.b. in a trust 1215 fund or separate account for use only as authorized in this 1216 section. 1217 2. A certified applicant may request that the Department of 1218 Revenue suspend further distributions of state funds made 1219 available under s. 212.20(6)(e)(d)6.b. for 12 months after 1220 expiration of an existing agreement with a spring training 1221 franchise to provide the certified applicant with an opportunity 1222 to enter into a new agreement with a spring training franchise, 1223 at which time the distributions shall resume. 1224 3. The expenditure of state funds distributed to an 1225 applicant certified before July 1, 2010, must begin within 48 1226 months after the initial receipt of the state funds. In 1227 addition, the construction of, or capital improvements to, a 1228 spring training facility must be completed within 24 months 1229 after the project’s commencement. 1230 Section 17. Subsection (6) of section 288.1169, Florida 1231 Statutes, is amended to read: 1232 288.1169 International Game Fish Association World Center 1233 facility.— 1234 (6) The Department of Commerce must recertify every 10 1235 years that the facility is open, that the International Game 1236 Fish Association World Center continues to be the only 1237 international administrative headquarters, fishing museum, and 1238 Hall of Fame in the United States recognized by the 1239 International Game Fish Association, and that the project is 1240 meeting the minimum projections for attendance or sales tax 1241 revenues as required at the time of original certification. If 1242 the facility is not recertified during this 10-year review as 1243 meeting the minimum projections, then funding shall be abated 1244 until certification criteria are met. If the project fails to 1245 generate $1 million of annual revenues pursuant to paragraph 1246 (2)(e), the distribution of revenues pursuant to s. 212.20(6)(e) 1247(d)6.d. shall be reduced to an amount equal to $83,333 1248 multiplied by a fraction, the numerator of which is the actual 1249 revenues generated and the denominator of which is $1 million. 1250 Such reduction remains in effect until revenues generated by the 1251 project in a 12-month period equal or exceed $1 million. 1252 Section 18. Effective November 1, 2012, subsection (4) of 1253 section 1011.62, Florida Statutes, is amended to read: 1254 1011.62 Funds for operation of schools.—If the annual 1255 allocation from the Florida Education Finance Program to each 1256 district for operation of schools is not determined in the 1257 annual appropriations act or the substantive bill implementing 1258 the annual appropriations act, it shall be determined as 1259 follows: 1260 (4) COMPUTATION FOR ALLOCATING SPECIFIED EDUCATION SALES 1261 TAX PROCEEDSOF DISTRICT REQUIRED LOCAL EFFORT.—The Legislature 1262 shall prescribe the aggregate amount of revenue from property 1263 taxes that would otherwise be requiredlocal effortfor all 1264 school districts collectively if proceeds of the specified 1265 education sales tax were not available as an item in the General 1266 Appropriations Act for each fiscal year. The amount that shall 1267 be appropriated to each district shall be providedprovide1268 annually from funds reserved in the General Revenue Fund under 1269 s. 212.20(6)(d), and shall replace revenue that would otherwise 1270 have to be raised by local property taxes, toward the cost of 1271 the Florida Education Finance Program for kindergarten through 1272 grade 12 programs using the following calculationsshall be1273calculated as follows: 1274 (a) Estimated taxable value calculations.— 1275 1.a. Not later than 2 working days prior to July 19, the 1276 Department of Revenue shall certify to the Commissioner of 1277 Education its most recent estimate of the taxable value for 1278 school purposes in each school district and the total for all 1279 school districts in the state for the current calendar year 1280 based on the latest available data obtained from the local 1281 property appraisers. The value certified shall be the taxable 1282 value for school purposes for that year, and no further 1283 adjustments shall be made, except those made pursuant to 1284 paragraphs (c) and (d), or an assessment roll change required by 1285 final judicial decisions as specified in paragraph (12)(b). Not 1286 later than July 19, the Commissioner of Education shall compute 1287 a millage rate, rounded to the next highest one one-thousandth 1288 of a mill, which, ifwhenapplied to 96 percent of the estimated 1289 state total taxable value for school purposes, would generate 1290 the prescribed aggregate amount of revenue from property taxes 1291 that would otherwise be requiredlocal effortfor that year for 1292 all districts if proceeds of the specified education sales tax 1293 were not available.The Commissioner of Education shall certify1294to each district school board the millage rate, computed as1295prescribed in this subparagraph, as the minimum millage rate1296necessary to provide the district required local effort for that1297year.1298 b. The General Appropriations Act shall direct the 1299 computation of the statewide adjusted aggregate amountfor1300 requiredlocal effortfor all school districts collectivelyfrom1301ad valorem taxesto ensure that no school district’s allocation 1302revenuefrom proceeds of the specified education sales tax 1303required local effort millagewill produce more than 90 percent 1304 of the district’s total Florida Education Finance Program 1305 calculation as calculated and adopted by the Legislature, and 1306 the estimated adjustment of therequired local effortmillage 1307 rate of each district that would produceproducesmore than 90 1308 percent of its total Florida Education Finance Program 1309 entitlement to a level that would be required towillproduce 1310 only 90 percent of its total Florida Education Finance Program 1311 entitlement in the July calculation if proceeds of the specified 1312 education sales tax were not available. 1313 2. On the same date as the certification in sub 1314 subparagraph 1.a., the Department of Revenue shall certify to 1315 the Commissioner of Education for each district: 1316 a. Each year for which the property appraiser has certified 1317 the taxable value pursuant to s. 193.122(2) or (3), if 1318 applicable, since the prior certification under sub-subparagraph 1319 1.a. 1320 b. For each year identified in sub-subparagraph a., the 1321 taxable value certified by the appraiser pursuant to s. 1322 193.122(2) or (3), if applicable, since the prior certification 1323 under sub-subparagraph 1.a. This is the certification that 1324 reflects all final administrative actions of the value 1325 adjustment board. 1326 (b) Equalization of proceeds from the specified education 1327 sales taxrequired local effort.— 1328 1. The Department of Revenue shall include with its 1329 certifications provided pursuant to paragraph (a) its most 1330 recent determination of the assessment level of the prior year’s 1331 assessment roll for each county and for the state as a whole. 1332 2. The Commissioner of Education shall adjust the estimated 1333required local effortmillage that would otherwise be required 1334 of each district for the current year if proceeds from the 1335 specified education sales tax were not available, computed 1336 pursuant to paragraph (a), as follows: 1337 a. The equalization factor for the prior year’s assessment 1338 roll of each district shall be multiplied by 96 percent of the 1339 taxable value for school purposes shown on that roll and by the 1340 prior year’s estimate ofrequired local-effortmillage under 1341 this subsection, exclusive of any equalization adjustment made 1342 pursuant to this paragraph. The dollar amount so computed shall 1343 be the additional amount required from the proceeds of the 1344 specified education sales taxrequired local effortfor 1345 equalization for the current year. 1346 b. Such equalization factor shall be computed as the 1347 quotient of the prior year’s assessment level of the state as a 1348 whole divided by the prior year’s assessment level of the 1349 county, from which quotient shall be subtracted 1. 1350 c. The dollar amount of additional proceeds required from 1351 the specified education sales taxlocal effortfor equalization 1352 for each district shall be converted to an estimatedamillage 1353 rate that would otherwise be required if proceeds from the 1354 specified education sales tax were not available, based on 96 1355 percent of the current year’s taxable value for that district, 1356 and added to the estimatedrequired local effortmillage 1357 determined pursuant to paragraph (a) that would otherwise be 1358 required if proceeds from the specified education sales tax were 1359 not available. 1360 3.Notwithstanding the limitations imposed pursuant to s.13611011.71(1),The total estimatedrequired local-effortmillage, 1362 including additional proceeds requiredlocal effortfor 1363 equalization, shall be an amount not to exceed 10 minus the 1364 maximum millage allowed as nonvoted discretionary millage, 1365 exclusive of millage authorized pursuant to s. 1011.71(2). 1366 Nothing herein shall be construed to allow a millage in excess 1367 of that authorized in s. 9, Art. VII of the State Constitution. 1368 4. For the purposes of this chapter, the term “assessment 1369 level” means the value-weighted mean assessment ratio for the 1370 county or state as a whole, as determined pursuant to s. 1371 195.096, or as subsequently adjusted. However, for those parcels 1372 studied pursuant to s. 195.096(3)(a)1. which are receiving the 1373 assessment limitation set forth in s. 193.155, and for which the 1374 assessed value is less than the just value, the department shall 1375 use the assessed value in the numerator and the denominator of 1376 such assessment ratio. In the event a court has adjudicated that 1377 the department failed to establish an accurate estimate of an 1378 assessment level of a county and recomputation resulting in an 1379 accurate estimate based upon the evidence before the court was 1380 not possible, that county shall be presumed to have an 1381 assessment level equal to that of the state as a whole. 1382 5. If, in the prior year, taxes were levied against an 1383 interim assessment roll pursuant to s. 193.1145, the assessment 1384 level and prior year’s nonexempt assessed valuation used for the 1385 purposes of this paragraph shall be those of the interim 1386 assessment roll. 1387 (c) Exclusion.— 1388 1. In those instances in which: 1389 a. There is litigation either attacking the authority of 1390 the property appraiser to include certain property on the tax 1391 assessment roll as taxable property or contesting the assessed 1392 value of certain property on the tax assessment roll, and 1393 b. The assessed value of the property in contest involves 1394 more than 6 percent of the total nonexempt assessment roll, the 1395 plaintiff shall provide to the district school board of the 1396 county in which the property is located and to the Department of 1397 Education a certified copy of the petition and receipt for the 1398 good faith payment at the time they are filed with the court. 1399 2. For purposes of computing the amount of revenue from 1400 property taxes that would otherwise be required if proceeds from 1401 the specified education sales tax were not availablelocal1402effortfor each district affected by such petition, the 1403 Department of Education shall exclude from the district’s total 1404 nonexempt assessment roll the assessed value of the property in 1405 contest and shall add an appropriatetheamount for allocation 1406 to the district from the proceeds of the specified education 1407 sales taxof the good faith payment to the district’s required1408local effort. 1409 (d) Recomputation.—Following final adjudication of any 1410 litigation on the basis of which an adjustment in taxable value 1411 was made pursuant to paragraph (c), the department shall 1412 recompute the amount of revenue from property taxes that would 1413 otherwise have been required fromlocal effort foreach district 1414 for each year affected by such adjustments, utilizing taxable 1415 values approved by the court, and shall adjust subsequent 1416 allocations from the proceeds of the specified education sales 1417 tax to such districts accordingly. 1418(e)Prior period funding adjustment millage.—14191. There shall be an additional millage to be known as the1420Prior Period Funding Adjustment Millage levied by a school1421district if the prior period unrealized required local effort1422funds are greater than zero. The Commissioner of Education shall1423calculate the amount of the prior period unrealized required1424local effort funds as specified in subparagraph 2. and the1425millage required to generate that amount as specified in this1426subparagraph. The Prior Period Funding Adjustment Millage shall1427be the quotient of the prior period unrealized required local1428effort funds divided by the current year taxable value certified1429to the Commissioner of Education pursuant to sub-subparagraph1430(a)1.a. This levy shall be in addition to the required local1431effort millage certified pursuant to this subsection. Such1432millage shall not affect the calculation of the current year’s1433required local effort, and the funds generated by such levy1434shall not be included in the district’s Florida Education1435Finance Program allocation for that fiscal year. For purposes of1436the millage to be included on the Notice of Proposed Taxes, the1437Commissioner of Education shall adjust the required local effort1438millage computed pursuant to paragraph (a) as adjusted by1439paragraph (b) for the current year for any district that levies1440a Prior Period Funding Adjustment Millage to include all Prior1441Period Funding Adjustment Millage. For the purpose of this1442paragraph, there shall be a Prior Period Funding Adjustment1443Millage levied for each year certified by the Department of1444Revenue pursuant to sub-subparagraph (a)2.a. since the previous1445year certification and for which the calculation in sub1446subparagraph 2.b. is greater than zero.14472.a. As used in this subparagraph, the term:1448(I) “Prior year” means a year certified under sub1449subparagraph (a)2.a.1450(II) “Preliminary taxable value” means:1451(A) If the prior year is the 2009-2010 fiscal year or1452later, the taxable value certified to the Commissioner of1453Education pursuant to sub-subparagraph (a)1.a.1454(B) If the prior year is the 2008-2009 fiscal year or1455earlier, the taxable value certified pursuant to the final1456calculation as specified in former paragraph (b) as that1457paragraph existed in the prior year.1458(III) “Final taxable value” means the district’s taxable1459value as certified by the property appraiser pursuant to s.1460193.122(2) or (3), if applicable. This is the certification that1461reflects all final administrative actions of the value1462adjustment board.1463b. For purposes of this subsection and with respect to each1464year certified pursuant to sub-subparagraph (a)2.a., if the1465district’s prior year preliminary taxable value is greater than1466the district’s prior year final taxable value, the prior period1467unrealized required local effort funds are the difference1468between the district’s prior year preliminary taxable value and1469the district’s prior year final taxable value, multiplied by the1470prior year district required local effort millage. If the1471district’s prior year preliminary taxable value is less than the1472district’s prior year final taxable value, the prior period1473unrealized required local effort funds are zero.1474 Section 19. Effective November 1, 2012, subsection (1) of 1475 section 1011.71, Florida Statutes, is amended to read: 1476 1011.71 District school tax.— 1477 (1)If the district school tax is not provided in the1478General Appropriations Act or the substantive bill implementing1479the General Appropriations Act, each district school board1480desiring to participate in the state allocation of funds for1481current operation as prescribed by s.1011.62(12) shall levy on1482the taxable value for school purposes of the district, exclusive1483of millage voted under the provisions of s. 9(b) or s. 12, Art.1484VII of the State Constitution, a millage rate not to exceed the1485amount certified by the commissioner as the minimum millage rate1486necessary to provide the district required local effort for the1487current year, pursuant to s.1011.62(4)(a)1. In addition to the1488required local effort millage levy,Each district school board 1489 may levy a nonvoted current operating discretionary millage. The 1490 Legislature shall prescribe annually in the appropriations act 1491 the maximum amount of millage a district may levy. 1492 Section 20. Effective November 1, 2012, section 218.67, 1493 Florida Statutes, is amended to read: 1494 218.67 Distribution for fiscally constrained counties.— 1495 (1) Each county that is entirely within a rural area of 1496 critical economic concern as designated by the Governor pursuant 1497 to s. 288.0656 or each county for which the value of a mill will 1498 raise no more than $5 million in revenue, based on the taxable 1499 value certified pursuant to s. 1011.62(4)(a)1.a., from the 1500 previous July 1, shall be considered a fiscally constrained 1501 county. 1502 (2) Each fiscally constrained county government that 1503 participates in the local government half-cent sales tax shall 1504 be eligible to receive an additional distribution from the Local 1505 Government Half-cent Sales Tax Clearing Trust Fund, as provided 1506 in s. 202.18(2)(c)1., in addition to its regular monthly 1507 distribution provided under this part and any emergency or 1508 supplemental distribution under s. 218.65. 1509 (3) The amount to be distributed to each fiscally 1510 constrained county shall be determined by the Department of 1511 Revenue at the beginning of the fiscal year, using the prior 1512 fiscal year’s July 1 taxable value certified pursuant to s. 1513 1011.62(4)(a)1.a., tax data, population as defined in s. 218.21, 1514 and millage rate levied for the prior fiscal year. The amount 1515 distributed shall be allocated based upon the following factors: 1516 (a) The relative revenue-raising-capacity factor shall be 1517 the ability of the eligible county to generate ad valorem 1518 revenues from 1 mill of taxation on a per capita basis. A county 1519 that raises no more than $25 per capita from 1 mill shall be 1520 assigned a value of 1; a county that raises more than $25 but no 1521 more than $30 per capita from 1 mill shall be assigned a value 1522 of 0.75; and a county that raises more than $30 but no more than 1523 $50 per capita from 1 mill shall be assigned a value of 0.5. No 1524 value shall be assigned to counties that raise more than $50 per 1525 capita from 1 mill of ad valorem taxation. 1526 (b) The local-effort factor shall be a measure of the 1527 relative level of property tax revenues that would otherwise 1528 have been requiredlocal effortof the eligible county if 1529 proceeds from the specified education sales tax were not 1530 available as indicated by the estimated millage rateleviedfor 1531 the prior fiscal year. The local-effort factor shall be the most 1532 recently adopted countywide operating millage rate plus an 1533 estimated amount of millage that would have been required if 1534 proceeds from the specified education sales tax were not 1535 available for each eligible county multiplied by 0.1. 1536 (c) Each eligible county’s proportional allocation of the 1537 total amount available to be distributed to all of the eligible 1538 counties shall be in the same proportion as the sum of the 1539 county’s two factors is to the sum of the two factors for all 1540 eligible counties. The counties that are eligible to receive an 1541 allocation under this subsection and the amount available to be 1542 distributed to such counties shall not include counties 1543 participating in the phaseout period under subsection (4) or the 1544 amounts they remain eligible to receive during the phaseout. 1545 (4) For those counties that no longer qualify under the 1546 requirements of subsection (1) after the effective date of this 1547 act, there shall be a 2-year phaseout period. Beginning on July 1548 1 of the year following the year in which the value of a mill 1549 for that county exceeds $5 million in revenue, the county shall 1550 receive two-thirds of the amount received in the prior year, and 1551 beginning on July 1 of the second year following the year in 1552 which the value of a mill for that county exceeds $5 million in 1553 revenue, the county shall receive one-third of the amount 1554 received in the last year that the county qualified as a 1555 fiscally constrained county. Following the 2-year phaseout 1556 period, the county shall no longer be eligible to receive any 1557 distributions under this section unless the county can be 1558 considered a fiscally constrained county as provided in 1559 subsection (1). 1560 (5) The revenues received under this section may be used by 1561 a county for any public purpose, except that such revenues may 1562 not be used to pay debt service on bonds, notes, certificates of 1563 participation, or any other forms of indebtedness. 1564 Section 21. Effective November 1, 2012, paragraph (a) of 1565 subsection (9) of section 1002.32, Florida Statutes, is amended 1566 to read: 1567 1002.32 Developmental research (laboratory) schools.— 1568 (9) FUNDING.—Funding for a lab school, including a charter 1569 lab school, shall be provided as follows: 1570 (a) Each lab school shall be allocated its proportional 1571 share of operating funds from the Florida Education Finance 1572 Program as provided in s. 1011.62 based on the county in which 1573 the lab school is located and the General Appropriations Act. 1574 The nonvoted ad valorem millage that would otherwise be required 1575 for lab schools shall be allocated from state funds. The 1576 requiredlocal effortfunds calculated pursuant to s. 1011.62 1577 shall be allocated from state funds to the schools as a part of 1578 the allocation of operating funds pursuant to s. 1011.62. Each 1579 eligible lab school in operation as of September 1, 2002, shall 1580 also receive a proportional share of the sparsity supplement as 1581 calculated pursuant to s. 1011.62. In addition, each lab school 1582 shall receive its proportional share of all categorical funds, 1583 with the exception of s. 1011.68, and new categorical funds 1584 enacted after July 1, 1994, for the purpose of elementary or 1585 secondary academic program enhancement. The sum of funds 1586 available as provided in this paragraph shall be included 1587 annually in the Florida Education Finance Program and 1588 appropriate categorical programs funded in the General 1589 Appropriations Act. 1590 Section 22. Effective November 1, 2012, section 1011.02, 1591 Florida Statutes, is amended to read: 1592 1011.02 District school boards to adopt tentative budget.— 1593 (1) On or before the date prescribed in rules of the State 1594 Board of Education, each district school board shall receive and 1595 examine the tentative budget submitted by the district school 1596 superintendent, and shall require such changes to be made, in 1597 keeping with the purposes of the school code, as may be to the 1598 best interest of the school program in the district. 1599 (2) The district school board shall determine, within 1600 prescribed limits, the reserves to be allotted for 1601 contingencies, and the cash balance to be carried forward at the 1602 end of the year. If the district school board shall require any 1603 changes to be made in receipts, in the reserves for 1604 contingencies, or in the cash balance to be carried forward at 1605 the end of the year, it shall also require necessary changes to 1606 be made in the appropriations for expenditures so that the 1607 budget, as changed, will not contain appropriations for 1608 expenditures and reserves in excess of, or less than, estimated 1609 receipts and balances. 1610 (3) The proposed budget shall include the anticipatedan1611 amount of proceeds from the specified education sales tax that 1612 the district school board expects to receivefor local required1613effortfor current operation, in accordance with the 1614 requirements of s. 1011.62(4). 1615 (4) When a tentative budget has been prepared in accordance 1616 with rules of the State Board of Education, the proposed 1617 expenditures, plus transfers, and balances shall not exceed the 1618 estimated income, transfers, and balances. The budget and each 1619 of the parts thereof shall balance. 1620 (5) The district school board shall adopt a tentative 1621 budget. 1622 Section 23. Effective November 1, 2012, paragraph (c) of 1623 subsection (3) of section 200.065, Florida Statutes, is amended 1624 to read: 1625 200.065 Method of fixing millage.— 1626 (3) The advertisement shall be no less than one-quarter 1627 page in size of a standard size or a tabloid size newspaper, and 1628 the headline in the advertisement shall be in a type no smaller 1629 than 18 point. The advertisement shall not be placed in that 1630 portion of the newspaper where legal notices and classified 1631 advertisements appear. The advertisement shall be published in a 1632 newspaper of general paid circulation in the county or in a 1633 geographically limited insert of such newspaper. The geographic 1634 boundaries in which such insert is circulated shall include the 1635 geographic boundaries of the taxing authority. It is the 1636 legislative intent that, whenever possible, the advertisement 1637 appear in a newspaper that is published at least 5 days a week 1638 unless the only newspaper in the county is published less than 5 1639 days a week, or that the advertisement appear in a 1640 geographically limited insert of such newspaper which insert is 1641 published throughout the taxing authority’s jurisdiction at 1642 least twice each week. It is further the legislative intent that 1643 the newspaper selected be one of general interest and readership 1644 in the community and not one of limited subject matter, pursuant 1645 to chapter 50. 1646 (c) For school districts which have proposed a millage rate 1647 in excess of 100 percent of the rolled-back rate computed 1648 pursuant to subsection (1) and which propose to levy nonvoted 1649 millage in excess of the minimum amount required pursuant to s. 1650 1011.60(6), the advertisement shall be in the following form: 1651 NOTICE OF PROPOSED TAX INCREASE 1652 The ...(name of school district)... will soon consider a 1653 measure to increase its property tax levy. 1654 Last year’s property tax levy: 1655 A. Initially proposed tax levy $XX,XXX,XXX 1656 B. Less tax reductions due to Value Adjustment Board and 1657 other assessment changes ($XX,XXX,XXX) 1658 C. Actual property tax levy $XX,XXX,XXX 1659 This year’s proposed tax levy $XX,XXX,XXX 1660 A portion of the tax levy is required under state law in 1661 order for the school board to receive $...(amount A)... in state 1662 education grants. The required portion has ...(increased or 1663 decreased)... by ...(amount B)... percent and represents 1664 approximately ...(amount C)... of the total proposed taxes. 1665 The remainder of the taxes is proposed solely at the 1666 discretion of the school board. 1667 All concerned citizens are invited to a public hearing on 1668 the tax increase to be held on ...(date and time)... at 1669 ...(meeting place).... 1670 A DECISION on the proposed tax increase and the budget will 1671 be made at this hearing. 1672 16731.AMOUNT A shall be an estimate, provided by the 1674 Department of Education, of the amount to be received in the 1675 current fiscal year by the district from state appropriations 1676 for the Florida Education Finance Program. 16772. AMOUNT B shall be the percent increase over the rolled1678back rate necessary to levy only the required local effort in1679the current fiscal year, computed as though in the preceding1680fiscal year only the required local effort was levied.16813. AMOUNT C shall be the quotient of required local-effort1682millage divided by the total proposed nonvoted millage, rounded1683to the nearest tenth and stated in words; however, the stated1684amount shall not exceed nine-tenths.1685 Section 24. Except as otherwise expressly provided in this 1686 act, and except for this section, which shall take effect upon 1687 this act becoming a law, this act shall take effect January 1, 1688 2012.