Bill Text: FL S1832 | 2012 | Regular Session | Introduced
Bill Title: Review of Exemptions and Exclusions from the Tax on Sales, Use, and Other Transactions
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2012-03-09 - Died in Budget Subcommittee on Finance and Tax [S1832 Detail]
Download: Florida-2012-S1832-Introduced.html
Florida Senate - 2012 SB 1832
By Senator Gibson
1-01282-12 20121832__
1 A bill to be entitled
2 An act relating to review of exemptions and exclusions
3 from the tax on sales, use, and other transactions;
4 requiring the Senate and House of Representatives to
5 appoint a Joint Legislative Review Committee to
6 oversee the review of exemptions from the tax on
7 sales, use, and other transactions and make
8 recommendations regarding the review; creating s.
9 11.9035, F.S.; providing a short title; providing
10 responsibilities of the Joint Legislative Review
11 Committee for the purpose of reviewing exemptions from
12 the general state sales and use tax and exclusions of
13 sales of services from such taxation; providing for
14 meetings and governance by joint rules; providing
15 definitions; specifying powers and duties; providing
16 for reports; requiring continuing periodic review of
17 sales tax exemptions and exclusions; providing for
18 legislative proposals; amending s. 212.08, F.S.;
19 providing for future elimination of all sales, rental,
20 use, consumption, distribution, and storage tax
21 exemptions under the section except those for general
22 groceries, medical, guide dogs for the blind, hospital
23 meals and rooms, household fuels, meals delivered by
24 nonprofit volunteer organizations as a charitable
25 function, and certain books, lunches, and publications
26 used or provided at schools for students grades K
27 through 12; repealing s. 212.051, F.S., relating to
28 exemption for equipment, machinery, and other
29 materials for pollution control; repealing s. 212.052,
30 F.S., relating to exemption for research or
31 development costs; repealing s. 212.0598, F.S.,
32 relating to partial exemption for air carriers’
33 maintenance bases; repealing s. 212.0602, F.S.,
34 relating to a limited exemption for education;
35 repealing s. 212.0801, F.S., relating to an exemption
36 for qualified aircraft; repealing s. 212.0821, F.S.,
37 relating to legislative intent that political
38 subdivisions and public libraries use sales tax
39 exemption certificates for certain purchases;
40 repealing s. 212.09, F.S., relating to trade-ins
41 deducted; repealing s. 212.096, F.S., relating to
42 credit for job creation in enterprise zones; repealing
43 s. 212.097, F.S., relating to Urban High Crime area
44 job tax credit; repealing s. 212.098, F.S., relating
45 to rural job tax credit; providing for future repeal
46 of certain provisions of ss. 212.02, 212.03, 212.031,
47 212.04, 212.05, 212.0506, 212.06, 212.0601, 212.07,
48 212.081, 212.12, 212.20, and 376.75, F.S., relating to
49 various sales and use tax exemptions, exclusions, and
50 credits; providing exceptions; providing effective
51 dates.
52
53 WHEREAS, Florida’s current budget difficulties require the
54 state to consider innovative solutions in addressing the long
55 term viability of the state’s tax structure, and
56 WHEREAS, the state’s tax structure should treat individuals
57 fairly and equitably, imposing similar tax burdens on people in
58 similar circumstances, and
59 WHEREAS, exemptions to the state’s sales tax should serve
60 an important state interest and should be uniform in the effect
61 on citizens of the state, and
62 WHEREAS, the Legislature finds that a periodic sunset and
63 review of all sales tax exemptions will serve to restore
64 fairness to the state’s tax structure, NOW, THEREFORE,
65
66 Be It Enacted by the Legislature of the State of Florida:
67
68 Section 1. The Senate and the House of Representatives
69 shall appoint a Joint Legislative Review Committee for the
70 purposes of overseeing the review of exemptions from the tax on
71 sales, use, and other transactions required by s. 11.9035,
72 Florida Statutes, and making recommendations to the Legislature
73 regarding the review of exemptions.
74 Section 2. Section 11.9035, Florida Statutes, is created to
75 read:
76 11.9035 Sales and use tax exemption and exclusion review.—
77 (1) SHORT TITLE.—This section may be cited as the “Florida
78 Sales Tax Fairness Restoration Act.”
79 (2) SALES TAX EXEMPTIONS REVIEW.—The Joint Legislative
80 Review Committee shall conduct comprehensive, periodic reviews
81 of all exemptions from the general state sales and use tax and
82 exclusions of sales of services from such taxation as provided
83 by this section.
84 (3) PROCEDURES.—The committee for each review cycle shall
85 have its initial meeting no later than September 1, 2012, and
86 thereafter as necessary at the call of the chair at the time and
87 place designated by the chair. A quorum shall consist of a
88 majority of the committee members from each house. During the
89 interim between regular sessions, the committee may conduct its
90 meetings through teleconferences or other similar means.
91 (4) RULES.—For purposes of this section, the committee
92 shall be governed by joint rules adopted by the Legislature
93 pursuant to the authority to adopt rules under s. 4, Art. III of
94 the State Constitution.
95 (5) DEFINITIONS.—As used in this section, the term:
96 (a) “General state sales and use tax” means the sales and
97 use tax imposed under chapter 212.
98 (b) “Service” means a service within any of the following
99 service categories under the North American Industry
100 Classification System (NAICS):
101 1. Personal services.
102 2. Professional services.
103 3. Business services.
104 4. Financial services.
105 5. Media services.
106 6. Entertainment and sports services.
107 7. Construction services.
108 8. Institutional services.
109 9. Transportation services.
110 10. Health services.
111 (6) POWERS AND DUTIES.—The committee shall have the power
112 and duty to conduct a comprehensive review of all current and
113 future exemptions from the general state sales and use tax and
114 the exclusion of sales of services from such taxation. The
115 committee shall establish criteria by which each exemption or
116 exclusion shall be evaluated. In developing the evaluation
117 criteria, the committee shall consider the following principles
118 of taxation:
119 (a) Equity.—The tax system should treat individuals
120 equitably. It should impose similar tax burdens on people in
121 similar circumstances and should minimize regressivity.
122 (b) Simplicity, transparency, and compliance.—The tax
123 system should facilitate taxpayer compliance. It should be
124 simple and easy to understand and should provide visibility and
125 awareness of the taxes being paid.
126 (c) Neutrality.—The tax system should affect taxpayers
127 uniformly and consistently. The primary purpose of any tax
128 should be to raise revenue for appropriate governmental
129 functions, rather than to influence business and personal
130 decisions.
131 (d) Stability.—The tax system should produce revenues in a
132 stable and reliable manner that is sufficient to fund
133 appropriate governmental functions and expenditures.
134 (e) Integration.—The tax system should balance the need for
135 integration of federal, state, and local taxation.
136 (f) Public purpose.—Any sales and use tax exemption or
137 exclusion under the tax system should be based upon a
138 determination that the exemption or exclusion promotes an
139 important state interest and should benefit citizens as equally
140 as possible.
141 (7) FINDINGS AND RECOMMENDATIONS.—In conducting its review
142 of each exemption from the general state sales and use tax or
143 the exclusion of the sale of a service from such taxation, the
144 committee shall make findings of fact and recommend whether the
145 exemption should be retained, modified, or repealed or whether
146 the exclusion should be retained or eliminated. Each
147 recommendation must be made by majority vote of the committee
148 members from each house. If a majority vote of the committee
149 members from each house cannot be achieved, the committee must
150 recommend that the exemption or exclusion be repealed. The
151 findings of fact and recommendations of the committee shall be
152 made by reports to the President of the Senate and the Speaker
153 of the House of Representatives.
154 (8) EXEMPTIONS AND EXCLUSIONS REVIEW.—
155 (a) The committee may use its discretion in determining the
156 order in which it reviews the exemptions and exclusions. For the
157 initial review, the committee shall submit, to the President of
158 the Senate and the Speaker of the House of Representatives, its
159 initial report on one-third of the exemptions and exclusions by
160 November 1, 2012, its report on the second one-third of the
161 exemptions and exclusions by March 1, 2013, and its report on
162 the final one-third of the exemptions and exclusions by July 1,
163 2013, with no duplication of exemptions or exclusions from one
164 report to the next. Thereafter, the committee shall review every
165 3 years approximately one-third of the exemptions and exclusions
166 with no duplication of exemptions or exclusions reviewed from
167 one 3-year period to the next 3-year period. The committee shall
168 submit its 3-year period review reports no later than December 1
169 of the year before the next regular session after the third year
170 of each 3-year review cycle. The committee shall begin a new 9
171 year review cycle of all exemptions from the general state sales
172 and use tax and all exclusions of sales of services from such
173 taxation every 9 years after the termination of the previous
174 review cycle.
175 (b) Notwithstanding the provisions of this section,
176 exemptions and exclusions for necessities, including, but not
177 limited to, exemptions for general groceries as described in s.
178 212.08(1), exemptions for medical products or supplies as
179 described in s. 212.08(2), health services, residential housing,
180 residential electricity, and home heating fuel, and sales of
181 property or services that the state is prohibited from taxing
182 under the Constitution or laws of the United States may not be
183 subject to review by the committee or repeal in legislation
184 proposed by the committee.
185 (9) LEGISLATION.—At the regular session after submission of
186 each annual report to the Speaker of the House of
187 Representatives and the President of the Senate, the committee
188 shall introduce in both houses of the Legislature bills
189 presenting for reenactment, modification, or repeal those
190 exemptions from the general state sales and use tax or any
191 imposition of such taxation on sales of services that were
192 recommended by the committee in the report submitted immediately
193 before the session in which introduced. Each bill introduced
194 must be restricted to a single exemption or the imposition of
195 the tax on a single service and must be submitted to a vote of
196 the members of each house of the Legislature no later than the
197 eighth week of the session in which introduced, unless the
198 substance of the bill has already been voted on by the members
199 of that house of the Legislature in another bill during that
200 session and either passed or defeated or the bill has already
201 been submitted to the members of the other house and has been
202 defeated.
203 (10) REPEAL.—Any exemption from the state general sales and
204 use tax or exemption from imposition of such tax on sales of
205 services, that is not prohibited from review by the committee
206 under the requirements of paragraph (8)(b) and is not modified
207 or reenacted by the end of the regular session after any 9-year
208 review period, stands repealed on July 1 after the end of the
209 regular session immediately after the 9-year review period.
210 (11) CONSTRUCTION.—This section does not preclude a
211 legislator from filing for any legislative session a bill
212 proposing to modify, repeal, or enact any exemption from the
213 general state sales and use tax or the imposition of such
214 taxation on the sales of any service.
215 Section 3. Effective July 1, 2015, section 212.08, Florida
216 Statutes, is amended to read:
217 212.08 Sales, rental, use, consumption, distribution, and
218 storage tax; specified exemptions.—The sale at retail, the
219 rental, the use, the consumption, the distribution, and the
220 storage to be used or consumed in this state of the following
221 are hereby specifically exempt from the tax imposed by this
222 chapter.
223 (1) EXEMPTIONS; GENERAL GROCERIES.—
224 (a) Food products for human consumption are exempt from the
225 tax imposed by this chapter.
226 (b) For the purpose of this chapter, as used in this
227 subsection, the term “food products” means edible commodities,
228 whether processed, cooked, raw, canned, or in any other form,
229 which are generally regarded as food. This includes, but is not
230 limited to, all of the following:
231 1. Cereals and cereal products, baked goods, oleomargarine,
232 meat and meat products, fish and seafood products, frozen foods
233 and dinners, poultry, eggs and egg products, vegetables and
234 vegetable products, fruit and fruit products, spices, salt,
235 sugar and sugar products, milk and dairy products, and products
236 intended to be mixed with milk.
237 2. Natural fruit or vegetable juices or their concentrates
238 or reconstituted natural concentrated fruit or vegetable juices,
239 whether frozen or unfrozen, dehydrated, powdered, granulated,
240 sweetened or unsweetened, seasoned with salt or spice, or
241 unseasoned; coffee, coffee substitutes, or cocoa; and tea,
242 unless it is sold in a liquid form.
243 3. Bakery products sold by bakeries, pastry shops, or like
244 establishments that do not have eating facilities.
245 (c) The exemption provided by this subsection does not
246 apply to:
247 1. Food products sold as meals for consumption on or off
248 the premises of the dealer.
249 2. Food products furnished, prepared, or served for
250 consumption at tables, chairs, or counters or from trays,
251 glasses, dishes, or other tableware, whether provided by the
252 dealer or by a person with whom the dealer contracts to furnish,
253 prepare, or serve food products to others.
254 3. Food products ordinarily sold for immediate consumption
255 on the seller’s premises or near a location at which parking
256 facilities are provided primarily for the use of patrons in
257 consuming the products purchased at the location, even though
258 such products are sold on a “take out” or “to go” order and are
259 actually packaged or wrapped and taken from the premises of the
260 dealer.
261 4. Sandwiches sold ready for immediate consumption on or
262 off the seller’s premises.
263 5. Food products sold ready for immediate consumption
264 within a place, the entrance to which is subject to an admission
265 charge.
266 6. Food products sold as hot prepared food products.
267 7. Soft drinks, including, but not limited to, any
268 nonalcoholic beverage, any preparation or beverage commonly
269 referred to as a “soft drink,” or any noncarbonated drink made
270 from milk derivatives or tea, if sold in cans or similar
271 containers.
272 8. Ice cream, frozen yogurt, and similar frozen dairy or
273 nondairy products in cones, small cups, or pints, popsicles,
274 frozen fruit bars, or other novelty items, whether or not sold
275 separately.
276 9. Food that is prepared, whether on or off the premises,
277 and sold for immediate consumption. This does not apply to food
278 prepared off the premises and sold in the original sealed
279 container, or the slicing of products into smaller portions.
280 10. Food products sold through a vending machine, pushcart,
281 motor vehicle, or any other form of vehicle.
282 11. Candy and any similar product regarded as candy or
283 confection, based on its normal use, as indicated on the label
284 or advertising thereof.
285 12. Bakery products sold by bakeries, pastry shops, or like
286 establishments having eating facilities, except when sold for
287 consumption off the seller’s premises.
288 13. Food products served, prepared, or sold in or by
289 restaurants, lunch counters, cafeterias, hotels, taverns, or
290 other like places of business.
291 (d) As used in this subsection, the term:
292 1. “For consumption off the seller’s premises” means that
293 the food or drink is intended by the customer to be consumed at
294 a place away from the dealer’s premises.
295 2. “For consumption on the seller’s premises” means that
296 the food or drink sold may be immediately consumed on the
297 premises where the dealer conducts his or her business. In
298 determining whether an item of food is sold for immediate
299 consumption, the customary consumption practices prevailing at
300 the selling facility shall be considered.
301 3. “Premises” shall be construed broadly, and means, but is
302 not limited to, the lobby, aisle, or auditorium of a theater;
303 the seating, aisle, or parking area of an arena, rink, or
304 stadium; or the parking area of a drive-in or outdoor theater.
305 The premises of a caterer with respect to catered meals or
306 beverages shall be the place where such meals or beverages are
307 served.
308 4. “Hot prepared food products” means those products,
309 items, or components which have been prepared for sale in a
310 heated condition and which are sold at any temperature that is
311 higher than the air temperature of the room or place where they
312 are sold. “Hot prepared food products,” for the purposes of this
313 subsection, includes a combination of hot and cold food items or
314 components where a single price has been established for the
315 combination and the food products are sold in such combination,
316 such as a hot meal, a hot specialty dish or serving, or a hot
317 sandwich or hot pizza, including cold components or side items.
318 (e)1. Food or drinks not exempt under paragraphs (a), (b),
319 (c), and (d) are exempt, notwithstanding those paragraphs, when
320 purchased with food coupons or Special Supplemental Food Program
321 for Women, Infants, and Children vouchers issued under authority
322 of federal law.
323 2. This paragraph is effective only while federal law
324 prohibits a state’s participation in the federal food coupon
325 program or Special Supplemental Food Program for Women, Infants,
326 and Children if there is an official determination that state or
327 local sales taxes are collected within that state on purchases
328 of food or drinks with such coupons.
329 3. This paragraph shall not apply to any food or drinks on
330 which federal law shall permit sales taxes without penalty, such
331 as termination of the state’s participation.
332 (f) The application of the tax on a package that contains
333 exempt food products and taxable nonfood products depends upon
334 the essential character of the complete package.
335 1. If the taxable items represent more than 25 percent of
336 the cost of the complete package and a single charge is made,
337 the entire sales price of the package is taxable. If the taxable
338 items are separately stated, the separate charge for the taxable
339 items is subject to tax.
340 2. If the taxable items represent 25 percent or less of the
341 cost of the complete package and a single charge is made, the
342 entire sales price of the package is exempt from tax. The person
343 preparing the package is liable for the tax on the cost of the
344 taxable items going into the complete package. If the taxable
345 items are separately stated, the separate charge is subject to
346 tax.
347 (2) EXEMPTIONS; MEDICAL.—
348 (a) There shall be exempt from the tax imposed by this
349 chapter any medical products and supplies or medicine dispensed
350 according to an individual prescription or prescriptions written
351 by a prescriber authorized by law to prescribe medicinal drugs;
352 hypodermic needles; hypodermic syringes; chemical compounds and
353 test kits used for the diagnosis or treatment of human disease,
354 illness, or injury; and common household remedies recommended
355 and generally sold for internal or external use in the cure,
356 mitigation, treatment, or prevention of illness or disease in
357 human beings, but not including cosmetics or toilet articles,
358 notwithstanding the presence of medicinal ingredients therein,
359 according to a list prescribed and approved by the Department of
360 Health, which list shall be certified to the Department of
361 Revenue from time to time and included in the rules promulgated
362 by the Department of Revenue. There shall also be exempt from
363 the tax imposed by this chapter artificial eyes and limbs;
364 orthopedic shoes; prescription eyeglasses and items incidental
365 thereto or which become a part thereof; dentures; hearing aids;
366 crutches; prosthetic and orthopedic appliances; and funerals. In
367 addition, any items intended for one-time use which transfer
368 essential optical characteristics to contact lenses shall be
369 exempt from the tax imposed by this chapter; however, this
370 exemption shall apply only after $100,000 of the tax imposed by
371 this chapter on such items has been paid in any calendar year by
372 a taxpayer who claims the exemption in such year. Funeral
373 directors shall pay tax on all tangible personal property used
374 by them in their business.
375 (b) For the purposes of this subsection:
376 1. “Prosthetic and orthopedic appliances” means any
377 apparatus, instrument, device, or equipment used to replace or
378 substitute for any missing part of the body, to alleviate the
379 malfunction of any part of the body, or to assist any disabled
380 person in leading a normal life by facilitating such person’s
381 mobility. Such apparatus, instrument, device, or equipment shall
382 be exempted according to an individual prescription or
383 prescriptions written by a physician licensed under chapter 458,
384 chapter 459, chapter 460, chapter 461, or chapter 466, or
385 according to a list prescribed and approved by the Department of
386 Health, which list shall be certified to the Department of
387 Revenue from time to time and included in the rules promulgated
388 by the Department of Revenue.
389 2. “Cosmetics” means articles intended to be rubbed,
390 poured, sprinkled, or sprayed on, introduced into, or otherwise
391 applied to the human body for cleansing, beautifying, promoting
392 attractiveness, or altering the appearance and also means
393 articles intended for use as a compound of any such articles,
394 including, but not limited to, cold creams, suntan lotions,
395 makeup, and body lotions.
396 3. “Toilet articles” means any article advertised or held
397 out for sale for grooming purposes and those articles that are
398 customarily used for grooming purposes, regardless of the name
399 by which they may be known, including, but not limited to, soap,
400 toothpaste, hair spray, shaving products, colognes, perfumes,
401 shampoo, deodorant, and mouthwash.
402 4. “Prescription” includes any order for drugs or medicinal
403 supplies written or transmitted by any means of communication by
404 a duly licensed practitioner authorized by the laws of the state
405 to prescribe such drugs or medicinal supplies and intended to be
406 dispensed by a pharmacist. The term also includes an orally
407 transmitted order by the lawfully designated agent of such
408 practitioner. The term also includes an order written or
409 transmitted by a practitioner licensed to practice in a
410 jurisdiction other than this state, but only if the pharmacist
411 called upon to dispense such order determines, in the exercise
412 of his or her professional judgment, that the order is valid and
413 necessary for the treatment of a chronic or recurrent illness.
414 The term also includes a pharmacist’s order for a product
415 selected from the formulary created pursuant to s. 465.186. A
416 prescription may be retained in written form, or the pharmacist
417 may cause it to be recorded in a data processing system,
418 provided that such order can be produced in printed form upon
419 lawful request.
420 (c) Chlorine shall not be exempt from the tax imposed by
421 this chapter when used for the treatment of water in swimming
422 pools.
423 (d) Lithotripters are exempt.
424 (e) Human organs are exempt.
425 (f) Sales of drugs to or by physicians, dentists,
426 veterinarians, and hospitals in connection with medical
427 treatment are exempt.
428 (g) Medical products and supplies used in the cure,
429 mitigation, alleviation, prevention, or treatment of injury,
430 disease, or incapacity which are temporarily or permanently
431 incorporated into a patient or client by a practitioner of the
432 healing arts licensed in the state are exempt.
433 (h) The purchase by a veterinarian of commonly recognized
434 substances possessing curative or remedial properties which are
435 ordered and dispensed as treatment for a diagnosed health
436 disorder by or on the prescription of a duly licensed
437 veterinarian, and which are applied to or consumed by animals
438 for alleviation of pain or the cure or prevention of sickness,
439 disease, or suffering are exempt. Also exempt are the purchase
440 by a veterinarian of antiseptics, absorbent cotton, gauze for
441 bandages, lotions, vitamins, and worm remedies.
442 (i) X-ray opaques, also known as opaque drugs and
443 radiopaque, such as the various opaque dyes and barium sulphate,
444 when used in connection with medical X rays for treatment of
445 bodies of humans and animals, are exempt.
446 (j) Parts, special attachments, special lettering, and
447 other like items that are added to or attached to tangible
448 personal property so that a handicapped person can use them are
449 exempt when such items are purchased by a person pursuant to an
450 individual prescription.
451 (k) This subsection shall be strictly construed and
452 enforced.
453 (3) EXEMPTIONS; CERTAIN FARM EQUIPMENT.—There shall be no
454 tax on the sale, rental, lease, use, consumption, or storage for
455 use in this state of power farm equipment used exclusively on a
456 farm or in a forest in the agricultural production of crops or
457 products as produced by those agricultural industries included
458 in s. 570.02(1), or for fire prevention and suppression work
459 with respect to such crops or products. Harvesting may not be
460 construed to include processing activities. This exemption is
461 not forfeited by moving farm equipment between farms or forests.
462 However, this exemption shall not be allowed unless the
463 purchaser, renter, or lessee signs a certificate stating that
464 the farm equipment is to be used exclusively on a farm or in a
465 forest for agricultural production or for fire prevention and
466 suppression, as required by this subsection. Possession by a
467 seller, lessor, or other dealer of a written certification by
468 the purchaser, renter, or lessee certifying the purchaser’s,
469 renter’s, or lessee’s entitlement to an exemption permitted by
470 this subsection relieves the seller from the responsibility of
471 collecting the tax on the nontaxable amounts, and the department
472 shall look solely to the purchaser for recovery of such tax if
473 it determines that the purchaser was not entitled to the
474 exemption.
475 (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.—
476 (a) Also exempt are:
477 1. Water delivered to the purchaser through pipes or
478 conduits or delivered for irrigation purposes. The sale of
479 drinking water in bottles, cans, or other containers, including
480 water that contains minerals or carbonation in its natural state
481 or water to which minerals have been added at a water treatment
482 facility regulated by the Department of Environmental Protection
483 or the Department of Health, is exempt. This exemption does not
484 apply to the sale of drinking water in bottles, cans, or other
485 containers if carbonation or flavorings, except those added at a
486 water treatment facility, have been added. Water that has been
487 enhanced by the addition of minerals and that does not contain
488 any added carbonation or flavorings is also exempt.
489 2. All fuels used by a public or private utility, including
490 any municipal corporation or rural electric cooperative
491 association, in the generation of electric power or energy for
492 sale. Fuel other than motor fuel and diesel fuel is taxable as
493 provided in this chapter with the exception of fuel expressly
494 exempt herein. Motor fuels and diesel fuels are taxable as
495 provided in chapter 206, with the exception of those motor fuels
496 and diesel fuels used by railroad locomotives or vessels to
497 transport persons or property in interstate or foreign commerce,
498 which are taxable under this chapter only to the extent provided
499 herein. The basis of the tax shall be the ratio of intrastate
500 mileage to interstate or foreign mileage traveled by the
501 carrier’s railroad locomotives or vessels that were used in
502 interstate or foreign commerce and that had at least some
503 Florida mileage during the previous fiscal year of the carrier,
504 such ratio to be determined at the close of the fiscal year of
505 the carrier. However, during the fiscal year in which the
506 carrier begins its initial operations in this state, the
507 carrier’s mileage apportionment factor may be determined on the
508 basis of an estimated ratio of anticipated miles in this state
509 to anticipated total miles for that year, and subsequently,
510 additional tax shall be paid on the motor fuel and diesel fuels,
511 or a refund may be applied for, on the basis of the actual ratio
512 of the carrier’s railroad locomotives’ or vessels’ miles in this
513 state to its total miles for that year. This ratio shall be
514 applied each month to the total Florida purchases made in this
515 state of motor and diesel fuels to establish that portion of the
516 total used and consumed in intrastate movement and subject to
517 tax under this chapter. The basis for imposition of any
518 discretionary surtax shall be set forth in s. 212.054. Fuels
519 used exclusively in intrastate commerce do not qualify for the
520 proration of tax.
521 3. The transmission or wheeling of electricity.
522 (b) Alcoholic beverages and malt beverages are not exempt.
523 The terms “alcoholic beverages” and “malt beverages” as used in
524 this paragraph have the same meanings ascribed to them in ss.
525 561.01(4) and 563.01, respectively. It is determined by the
526 Legislature that the classification of alcoholic beverages made
527 in this paragraph for the purpose of extending the tax imposed
528 by this chapter is reasonable and just, and it is intended that
529 such tax be separate from, and in addition to, any other tax
530 imposed on alcoholic beverages.
531 (5) EXEMPTIONS; ACCOUNT OF USE.—
532 (a) Items in agricultural use and certain nets.—There are
533 exempt from the tax imposed by this chapter nets designed and
534 used exclusively by commercial fisheries; disinfectants,
535 fertilizers, insecticides, pesticides, herbicides, fungicides,
536 and weed killers used for application on crops or groves,
537 including commercial nurseries and home vegetable gardens, used
538 in dairy barns or on poultry farms for the purpose of protecting
539 poultry or livestock, or used directly on poultry or livestock;
540 portable containers or movable receptacles in which portable
541 containers are placed, used for processing farm products; field
542 and garden seeds, including flower seeds; nursery stock,
543 seedlings, cuttings, or other propagative material purchased for
544 growing stock; seeds, seedlings, cuttings, and plants used to
545 produce food for human consumption; cloth, plastic, and other
546 similar materials used for shade, mulch, or protection from
547 frost or insects on a farm; generators used on poultry farms;
548 and liquefied petroleum gas or other fuel used to heat a
549 structure in which started pullets or broilers are raised;
550 however, such exemption shall not be allowed unless the
551 purchaser or lessee signs a certificate stating that the item to
552 be exempted is for the exclusive use designated herein. Also
553 exempt are cellophane wrappers, glue for tin and glass
554 (apiarists), mailing cases for honey, shipping cases, window
555 cartons, and baling wire and twine used for baling hay, when
556 used by a farmer to contain, produce, or process an agricultural
557 commodity.
558 (b) Machinery and equipment used to increase productive
559 output.—
560 1. Industrial machinery and equipment purchased for
561 exclusive use by a new business in spaceport activities as
562 defined by s. 212.02 or for use in new businesses that
563 manufacture, process, compound, or produce for sale items of
564 tangible personal property at fixed locations are exempt from
565 the tax imposed by this chapter upon an affirmative showing by
566 the taxpayer to the satisfaction of the department that such
567 items are used in a new business in this state. Such purchases
568 must be made prior to the date the business first begins its
569 productive operations, and delivery of the purchased item must
570 be made within 12 months after that date.
571 2. Industrial machinery and equipment purchased for
572 exclusive use by an expanding facility which is engaged in
573 spaceport activities as defined by s. 212.02 or for use in
574 expanding manufacturing facilities or plant units which
575 manufacture, process, compound, or produce for sale items of
576 tangible personal property at fixed locations in this state are
577 exempt from any amount of tax imposed by this chapter upon an
578 affirmative showing by the taxpayer to the satisfaction of the
579 department that such items are used to increase the productive
580 output of such expanded facility or business by not less than 10
581 percent.
582 3.a. To receive an exemption provided by subparagraph 1. or
583 subparagraph 2., a qualifying business entity shall apply to the
584 department for a temporary tax exemption permit. The application
585 shall state that a new business exemption or expanded business
586 exemption is being sought. Upon a tentative affirmative
587 determination by the department pursuant to subparagraph 1. or
588 subparagraph 2., the department shall issue such permit.
589 b. The applicant shall maintain all necessary books and
590 records to support the exemption. Upon completion of purchases
591 of qualified machinery and equipment pursuant to subparagraph 1.
592 or subparagraph 2., the temporary tax permit shall be delivered
593 to the department or returned to the department by certified or
594 registered mail.
595 c. If, in a subsequent audit conducted by the department,
596 it is determined that the machinery and equipment purchased as
597 exempt under subparagraph 1. or subparagraph 2. did not meet the
598 criteria mandated by this paragraph or if commencement of
599 production did not occur, the amount of taxes exempted at the
600 time of purchase shall immediately be due and payable to the
601 department by the business entity, together with the appropriate
602 interest and penalty, computed from the date of purchase, in the
603 manner prescribed by this chapter.
604 d. If a qualifying business entity fails to apply for a
605 temporary exemption permit or if the tentative determination by
606 the department required to obtain a temporary exemption permit
607 is negative, a qualifying business entity shall receive the
608 exemption provided in subparagraph 1. or subparagraph 2. through
609 a refund of previously paid taxes. No refund may be made for
610 such taxes unless the criteria mandated by subparagraph 1. or
611 subparagraph 2. have been met and commencement of production has
612 occurred.
613 4. The department shall adopt rules governing applications
614 for, issuance of, and the form of temporary tax exemption
615 permits; provisions for recapture of taxes; and the manner and
616 form of refund applications, and may establish guidelines as to
617 the requisites for an affirmative showing of increased
618 productive output, commencement of production, and qualification
619 for exemption.
620 5. The exemptions provided in subparagraphs 1. and 2. do
621 not apply to machinery or equipment purchased or used by
622 electric utility companies, communications companies, oil or gas
623 exploration or production operations, publishing firms that do
624 not export at least 50 percent of their finished product out of
625 the state, any firm subject to regulation by the Division of
626 Hotels and Restaurants of the Department of Business and
627 Professional Regulation, or any firm that does not manufacture,
628 process, compound, or produce for sale items of tangible
629 personal property or that does not use such machinery and
630 equipment in spaceport activities as required by this paragraph.
631 The exemptions provided in subparagraphs 1. and 2. shall apply
632 to machinery and equipment purchased for use in phosphate or
633 other solid minerals severance, mining, or processing
634 operations.
635 6. For the purposes of the exemptions provided in
636 subparagraphs 1. and 2., these terms have the following
637 meanings:
638 a. “Industrial machinery and equipment” means tangible
639 personal property or other property that has a depreciable life
640 of 3 years or more and that is used as an integral part in the
641 manufacturing, processing, compounding, or production of
642 tangible personal property for sale or is exclusively used in
643 spaceport activities. A building and its structural components
644 are not industrial machinery and equipment unless the building
645 or structural component is so closely related to the industrial
646 machinery and equipment that it houses or supports that the
647 building or structural component can be expected to be replaced
648 when the machinery and equipment are replaced. Heating and air
649 conditioning systems are not industrial machinery and equipment
650 unless the sole justification for their installation is to meet
651 the requirements of the production process, even though the
652 system may provide incidental comfort to employees or serve, to
653 an insubstantial degree, nonproduction activities. The term
654 includes parts and accessories only to the extent that the
655 exemption thereof is consistent with the provisions of this
656 paragraph.
657 b. “Productive output” means the number of units actually
658 produced by a single plant, operation, or product line in a
659 single continuous 12-month period, irrespective of sales.
660 Increases in productive output shall be measured by the output
661 for 12 continuous months selected by the expanding business
662 following the completion of installation of such machinery or
663 equipment over the output for the 12 continuous months
664 immediately preceding such installation. However, in no case may
665 such time period begin later than 2 years following the
666 completion of installation of the new machinery and equipment.
667 The units used to measure productive output shall be physically
668 comparable between the two periods, irrespective of sales.
669 (c) Machinery and equipment used in production of
670 electrical or steam energy.—
671 1. The purchase of machinery and equipment for use at a
672 fixed location which machinery and equipment are necessary in
673 the production of electrical or steam energy resulting from the
674 burning of boiler fuels other than residual oil is exempt from
675 the tax imposed by this chapter. Such electrical or steam energy
676 must be primarily for use in manufacturing, processing,
677 compounding, or producing for sale items of tangible personal
678 property in this state. Use of a de minimis amount of residual
679 fuel to facilitate the burning of nonresidual fuel shall not
680 reduce the exemption otherwise available under this paragraph.
681 2. In facilities where machinery and equipment are
682 necessary to burn both residual and nonresidual fuels, the
683 exemption shall be prorated. Such proration shall be based upon
684 the production of electrical or steam energy from nonresidual
685 fuels as a percentage of electrical or steam energy from all
686 fuels. If it is determined that 15 percent or less of all
687 electrical or steam energy generated was produced by burning
688 residual fuel, the full exemption shall apply. Purchasers
689 claiming a partial exemption shall obtain such exemption by
690 refund of taxes paid, or as otherwise provided in the
691 department’s rules.
692 3. The department may adopt rules that provide for
693 implementation of this exemption. Purchasers of machinery and
694 equipment qualifying for the exemption provided in this
695 paragraph shall furnish the vendor with an affidavit stating
696 that the item or items to be exempted are for the use designated
697 herein. Any person furnishing a false affidavit to the vendor
698 for the purpose of evading payment of any tax imposed under this
699 chapter shall be subject to the penalty set forth in s. 212.085
700 and as otherwise provided by law. Purchasers with self-accrual
701 authority shall maintain all documentation necessary to prove
702 the exempt status of purchases.
703 (d) Machinery and equipment used under federal procurement
704 contract.—
705 1. Industrial machinery and equipment purchased by an
706 expanding business which manufactures tangible personal property
707 pursuant to federal procurement regulations at fixed locations
708 in this state are exempt from the tax imposed in this chapter
709 upon an affirmative showing by the taxpayer to the satisfaction
710 of the department that such items are used to increase the
711 implicit productive output of the expanded business by not less
712 than 10 percent. The percentage of increase is measured as
713 deflated implicit productive output for the calendar year during
714 which the installation of the machinery or equipment is
715 completed or during which commencement of production utilizing
716 such items is begun divided by the implicit productive output
717 for the preceding calendar year. In no case may the commencement
718 of production begin later than 2 years following completion of
719 installation of the machinery or equipment.
720 2. The amount of the exemption allowed shall equal the
721 taxes otherwise imposed by this chapter on qualifying industrial
722 machinery or equipment reduced by the percentage of gross
723 receipts from cost-reimbursement type contracts attributable to
724 the plant or operation to total gross receipts so attributable,
725 accrued for the year of completion or commencement.
726 3. The exemption provided by this paragraph shall inure to
727 the taxpayer only through refund of previously paid taxes. Such
728 refund shall be made within 30 days of formal approval by the
729 department of the taxpayer’s application, which application may
730 be made on an annual basis following installation of the
731 machinery or equipment.
732 4. For the purposes of this paragraph, the term:
733 a. “Cost-reimbursement type contracts” has the same meaning
734 as in 32 C.F.R. s. 3-405.
735 b. “Deflated implicit productive output” means the product
736 of implicit productive output times the quotient of the national
737 defense implicit price deflator for the preceding calendar year
738 divided by the deflator for the year of completion or
739 commencement.
740 c. “Eligible costs” means the total direct and indirect
741 costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
742 general and administrative costs, selling expenses, and profit,
743 defined by the uniform cost-accounting standards adopted by the
744 Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
745 2168.
746 d. “Implicit productive output” means the annual eligible
747 costs attributable to all contracts or subcontracts subject to
748 federal procurement regulations of the single plant or operation
749 at which the machinery or equipment is used.
750 e. “Industrial machinery and equipment” means tangible
751 personal property or other property that has a depreciable life
752 of 3 years or more, that qualifies as an eligible cost under
753 federal procurement regulations, and that is used as an integral
754 part of the process of production of tangible personal property.
755 A building and its structural components are not industrial
756 machinery and equipment unless the building or structural
757 component is so closely related to the industrial machinery and
758 equipment that it houses or supports that the building or
759 structural component can be expected to be replaced when the
760 machinery and equipment are replaced. Heating and air
761 conditioning systems are not industrial machinery and equipment
762 unless the sole justification for their installation is to meet
763 the requirements of the production process, even though the
764 system may provide incidental comfort to employees or serve, to
765 an insubstantial degree, nonproduction activities. The term
766 includes parts and accessories only to the extent that the
767 exemption of such parts and accessories is consistent with the
768 provisions of this paragraph.
769 f. “National defense implicit price deflator” means the
770 national defense implicit price deflator for the gross national
771 product as determined by the Bureau of Economic Analysis of the
772 United States Department of Commerce.
773 5. The exclusions provided in subparagraph (b)5. apply to
774 this exemption. This exemption applies only to machinery or
775 equipment purchased pursuant to production contracts with the
776 United States Department of Defense and Armed Forces, the
777 National Aeronautics and Space Administration, and other federal
778 agencies for which the contracts are classified for national
779 security reasons. In no event shall the provisions of this
780 paragraph apply to any expanding business the increase in
781 productive output of which could be measured under the
782 provisions of sub-subparagraph (b)6.b. as physically comparable
783 between the two periods.
784 (e) Gas or electricity used for certain agricultural
785 purposes.—
786 1. Butane gas, propane gas, natural gas, and all other
787 forms of liquefied petroleum gases are exempt from the tax
788 imposed by this chapter if used in any tractor, vehicle, or
789 other farm equipment which is used exclusively on a farm or for
790 processing farm products on the farm and no part of which gas is
791 used in any vehicle or equipment driven or operated on the
792 public highways of this state. This restriction does not apply
793 to the movement of farm vehicles or farm equipment between
794 farms. The transporting of bees by water and the operating of
795 equipment used in the apiary of a beekeeper is also deemed an
796 exempt use.
797 2. Electricity used directly or indirectly for production
798 or processing of agricultural products on the farm is exempt
799 from the tax imposed by this chapter. This exemption applies
800 only if the electricity used for the exempt purposes is
801 separately metered. If the electricity is not separately
802 metered, it is conclusively presumed that some portion of the
803 electricity is used for a nonexempt purpose, and all of the
804 electricity used for such purposes is taxable.
805 (f) Motion picture or video equipment used in motion
806 picture or television production activities and sound recording
807 equipment used in the production of master tapes and master
808 records.—
809 1. Motion picture or video equipment and sound recording
810 equipment purchased or leased for use in this state in
811 production activities is exempt from the tax imposed by this
812 chapter. The exemption provided by this paragraph shall inure to
813 the taxpayer upon presentation of the certificate of exemption
814 issued to the taxpayer under the provisions of s. 288.1258.
815 2. For the purpose of the exemption provided in
816 subparagraph 1.:
817 a. “Motion picture or video equipment” and “sound recording
818 equipment” includes only tangible personal property or other
819 property that has a depreciable life of 3 years or more and that
820 is used by the lessee or purchaser exclusively as an integral
821 part of production activities; however, motion picture or video
822 equipment and sound recording equipment does not include
823 supplies, tape, records, film, or video tape used in productions
824 or other similar items; vehicles or vessels; or general office
825 equipment not specifically suited to production activities. In
826 addition, the term does not include equipment purchased or
827 leased by television or radio broadcasting or cable companies
828 licensed by the Federal Communications Commission. Furthermore,
829 a building and its structural components are not motion picture
830 or video equipment and sound recording equipment unless the
831 building or structural component is so closely related to the
832 motion picture or video equipment and sound recording equipment
833 that it houses or supports that the building or structural
834 component can be expected to be replaced when the motion picture
835 or video equipment and sound recording equipment are replaced.
836 Heating and air-conditioning systems are not motion picture or
837 video equipment and sound recording equipment unless the sole
838 justification for their installation is to meet the requirements
839 of the production activities, even though the system may provide
840 incidental comfort to employees or serve, to an insubstantial
841 degree, nonproduction activities.
842 b. “Production activities” means activities directed toward
843 the preparation of a:
844 (I) Master tape or master record embodying sound; or
845 (II) Motion picture or television production which is
846 produced for theatrical, commercial, advertising, or educational
847 purposes and utilizes live or animated actions or a combination
848 of live and animated actions. The motion picture or television
849 production shall be commercially produced for sale or for
850 showing on screens or broadcasting on television and may be on
851 film or video tape.
852 (g) Building materials used in the rehabilitation of real
853 property located in an enterprise zone.—
854 1. Building materials used in the rehabilitation of real
855 property located in an enterprise zone are exempt from the tax
856 imposed by this chapter upon an affirmative showing to the
857 satisfaction of the department that the items have been used for
858 the rehabilitation of real property located in an enterprise
859 zone. Except as provided in subparagraph 2., this exemption
860 inures to the owner, lessee, or lessor at the time the real
861 property is rehabilitated, but only through a refund of
862 previously paid taxes. To receive a refund pursuant to this
863 paragraph, the owner, lessee, or lessor of the rehabilitated
864 real property must file an application under oath with the
865 governing body or enterprise zone development agency having
866 jurisdiction over the enterprise zone where the business is
867 located, as applicable. A single application for a refund may be
868 submitted for multiple, contiguous parcels that were part of a
869 single parcel that was divided as part of the rehabilitation of
870 the property. All other requirements of this paragraph apply to
871 each parcel on an individual basis. The application must
872 include:
873 a. The name and address of the person claiming the refund.
874 b. An address and assessment roll parcel number of the
875 rehabilitated real property for which a refund of previously
876 paid taxes is being sought.
877 c. A description of the improvements made to accomplish the
878 rehabilitation of the real property.
879 d. A copy of a valid building permit issued by the county
880 or municipal building department for the rehabilitation of the
881 real property.
882 e. A sworn statement, under penalty of perjury, from the
883 general contractor licensed in this state with whom the
884 applicant contracted to make the improvements necessary to
885 rehabilitate the real property, which lists the building
886 materials used to rehabilitate the real property, the actual
887 cost of the building materials, and the amount of sales tax paid
888 in this state on the building materials. If a general contractor
889 was not used, the applicant, not a general contractor, shall
890 make the sworn statement required by this sub-subparagraph.
891 Copies of the invoices that evidence the purchase of the
892 building materials used in the rehabilitation and the payment of
893 sales tax on the building materials must be attached to the
894 sworn statement provided by the general contractor or by the
895 applicant. Unless the actual cost of building materials used in
896 the rehabilitation of real property and the payment of sales
897 taxes is documented by a general contractor or by the applicant
898 in this manner, the cost of the building materials is deemed to
899 be an amount equal to 40 percent of the increase in assessed
900 value for ad valorem tax purposes.
901 f. The identifying number assigned pursuant to s. 290.0065
902 to the enterprise zone in which the rehabilitated real property
903 is located.
904 g. A certification by the local building code inspector
905 that the improvements necessary to rehabilitate the real
906 property are substantially completed.
907 h. A statement of whether the business is a small business
908 as defined by s. 288.703.
909 i. If applicable, the name and address of each permanent
910 employee of the business, including, for each employee who is a
911 resident of an enterprise zone, the identifying number assigned
912 pursuant to s. 290.0065 to the enterprise zone in which the
913 employee resides.
914 2. This exemption inures to a municipality, county, other
915 governmental unit or agency, or nonprofit community-based
916 organization through a refund of previously paid taxes if the
917 building materials used in the rehabilitation are paid for from
918 the funds of a community development block grant, State Housing
919 Initiatives Partnership Program, or similar grant or loan
920 program. To receive a refund, a municipality, county, other
921 governmental unit or agency, or nonprofit community-based
922 organization must file an application that includes the same
923 information required in subparagraph 1. In addition, the
924 application must include a sworn statement signed by the chief
925 executive officer of the municipality, county, other
926 governmental unit or agency, or nonprofit community-based
927 organization seeking a refund which states that the building
928 materials for which a refund is sought were funded by a
929 community development block grant, State Housing Initiatives
930 Partnership Program, or similar grant or loan program.
931 3. Within 10 working days after receipt of an application,
932 the governing body or enterprise zone development agency shall
933 review the application to determine if it contains all the
934 information required by subparagraph 1. or subparagraph 2. and
935 meets the criteria set out in this paragraph. The governing body
936 or agency shall certify all applications that contain the
937 required information and are eligible to receive a refund. If
938 applicable, the governing body or agency shall also certify if
939 20 percent of the employees of the business are residents of an
940 enterprise zone, excluding temporary and part-time employees.
941 The certification must be in writing, and a copy of the
942 certification shall be transmitted to the executive director of
943 the department. The applicant is responsible for forwarding a
944 certified application to the department within the time
945 specified in subparagraph 4.
946 4. An application for a refund must be submitted to the
947 department within 6 months after the rehabilitation of the
948 property is deemed to be substantially completed by the local
949 building code inspector or by November 1 after the rehabilitated
950 property is first subject to assessment.
951 5. Only one exemption through a refund of previously paid
952 taxes for the rehabilitation of real property is permitted for
953 any single parcel of property unless there is a change in
954 ownership, a new lessor, or a new lessee of the real property. A
955 refund may not be granted unless the amount to be refunded
956 exceeds $500. A refund may not exceed the lesser of 97 percent
957 of the Florida sales or use tax paid on the cost of the building
958 materials used in the rehabilitation of the real property as
959 determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
960 at least 20 percent of the employees of the business are
961 residents of an enterprise zone, excluding temporary and part
962 time employees, the amount of refund may not exceed the lesser
963 of 97 percent of the sales tax paid on the cost of the building
964 materials or $10,000. A refund shall be made within 30 days
965 after formal approval by the department of the application for
966 the refund.
967 6. The department shall adopt rules governing the manner
968 and form of refund applications and may establish guidelines as
969 to the requisites for an affirmative showing of qualification
970 for exemption under this paragraph.
971 7. The department shall deduct an amount equal to 10
972 percent of each refund granted under this paragraph from the
973 amount transferred into the Local Government Half-cent Sales Tax
974 Clearing Trust Fund pursuant to s. 212.20 for the county area in
975 which the rehabilitated real property is located and shall
976 transfer that amount to the General Revenue Fund.
977 8. For the purposes of the exemption provided in this
978 paragraph, the term:
979 a. “Building materials” means tangible personal property
980 that becomes a component part of improvements to real property.
981 b. “Real property” has the same meaning as provided in s.
982 192.001(12), except that the term does not include a condominium
983 parcel or condominium property as defined in s. 718.103.
984 c. “Rehabilitation of real property” means the
985 reconstruction, renovation, restoration, rehabilitation,
986 construction, or expansion of improvements to real property.
987 d. “Substantially completed” has the same meaning as
988 provided in s. 192.042(1).
989 9. This paragraph expires on the date specified in s.
990 290.016 for the expiration of the Florida Enterprise Zone Act.
991 (h) Business property used in an enterprise zone.—
992 1. Business property purchased for use by businesses
993 located in an enterprise zone which is subsequently used in an
994 enterprise zone shall be exempt from the tax imposed by this
995 chapter. This exemption inures to the business only through a
996 refund of previously paid taxes. A refund shall be authorized
997 upon an affirmative showing by the taxpayer to the satisfaction
998 of the department that the requirements of this paragraph have
999 been met.
1000 2. To receive a refund, the business must file under oath
1001 with the governing body or enterprise zone development agency
1002 having jurisdiction over the enterprise zone where the business
1003 is located, as applicable, an application which includes:
1004 a. The name and address of the business claiming the
1005 refund.
1006 b. The identifying number assigned pursuant to s. 290.0065
1007 to the enterprise zone in which the business is located.
1008 c. A specific description of the property for which a
1009 refund is sought, including its serial number or other permanent
1010 identification number.
1011 d. The location of the property.
1012 e. The sales invoice or other proof of purchase of the
1013 property, showing the amount of sales tax paid, the date of
1014 purchase, and the name and address of the sales tax dealer from
1015 whom the property was purchased.
1016 f. Whether the business is a small business as defined by
1017 s. 288.703.
1018 g. If applicable, the name and address of each permanent
1019 employee of the business, including, for each employee who is a
1020 resident of an enterprise zone, the identifying number assigned
1021 pursuant to s. 290.0065 to the enterprise zone in which the
1022 employee resides.
1023 3. Within 10 working days after receipt of an application,
1024 the governing body or enterprise zone development agency shall
1025 review the application to determine if it contains all the
1026 information required pursuant to subparagraph 2. and meets the
1027 criteria set out in this paragraph. The governing body or agency
1028 shall certify all applications that contain the information
1029 required pursuant to subparagraph 2. and meet the criteria set
1030 out in this paragraph as eligible to receive a refund. If
1031 applicable, the governing body or agency shall also certify if
1032 20 percent of the employees of the business are residents of an
1033 enterprise zone, excluding temporary and part-time employees.
1034 The certification shall be in writing, and a copy of the
1035 certification shall be transmitted to the executive director of
1036 the Department of Revenue. The business shall be responsible for
1037 forwarding a certified application to the department within the
1038 time specified in subparagraph 4.
1039 4. An application for a refund pursuant to this paragraph
1040 must be submitted to the department within 6 months after the
1041 tax is due on the business property that is purchased.
1042 5. The amount refunded on purchases of business property
1043 under this paragraph shall be the lesser of 97 percent of the
1044 sales tax paid on such business property or $5,000, or, if no
1045 less than 20 percent of the employees of the business are
1046 residents of an enterprise zone, excluding temporary and part
1047 time employees, the amount refunded on purchases of business
1048 property under this paragraph shall be the lesser of 97 percent
1049 of the sales tax paid on such business property or $10,000. A
1050 refund approved pursuant to this paragraph shall be made within
1051 30 days after formal approval by the department of the
1052 application for the refund. A refund may not be granted under
1053 this paragraph unless the amount to be refunded exceeds $100 in
1054 sales tax paid on purchases made within a 60-day time period.
1055 6. The department shall adopt rules governing the manner
1056 and form of refund applications and may establish guidelines as
1057 to the requisites for an affirmative showing of qualification
1058 for exemption under this paragraph.
1059 7. If the department determines that the business property
1060 is used outside an enterprise zone within 3 years from the date
1061 of purchase, the amount of taxes refunded to the business
1062 purchasing such business property shall immediately be due and
1063 payable to the department by the business, together with the
1064 appropriate interest and penalty, computed from the date of
1065 purchase, in the manner provided by this chapter.
1066 Notwithstanding this subparagraph, business property used
1067 exclusively in:
1068 a. Licensed commercial fishing vessels,
1069 b. Fishing guide boats, or
1070 c. Ecotourism guide boats
1071
1072 that leave and return to a fixed location within an area
1073 designated under s. 379.2353, Florida Statutes 2010, are
1074 eligible for the exemption provided under this paragraph if all
1075 requirements of this paragraph are met. Such vessels and boats
1076 must be owned by a business that is eligible to receive the
1077 exemption provided under this paragraph. This exemption does not
1078 apply to the purchase of a vessel or boat.
1079 8. The department shall deduct an amount equal to 10
1080 percent of each refund granted under this paragraph from the
1081 amount transferred into the Local Government Half-cent Sales Tax
1082 Clearing Trust Fund pursuant to s. 212.20 for the county area in
1083 which the business property is located and shall transfer that
1084 amount to the General Revenue Fund.
1085 9. For the purposes of this exemption, “business property”
1086 means new or used property defined as “recovery property” in s.
1087 168(c) of the Internal Revenue Code of 1954, as amended, except:
1088 a. Property classified as 3-year property under s.
1089 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1090 b. Industrial machinery and equipment as defined in sub
1091 subparagraph (b)6.a. and eligible for exemption under paragraph
1092 (b);
1093 c. Building materials as defined in sub-subparagraph
1094 (g)8.a.; and
1095 d. Business property having a sales price of under $5,000
1096 per unit.
1097 10. This paragraph expires on the date specified in s.
1098 290.016 for the expiration of the Florida Enterprise Zone Act.
1099 (i) Aircraft modification services.—There shall be exempt
1100 from the tax imposed by this chapter all charges for aircraft
1101 modification services, including parts and equipment furnished
1102 or installed in connection therewith, performed under authority
1103 of a supplemental type certificate issued by the Federal
1104 Aviation Administration.
1105 (j) Machinery and equipment used in semiconductor, defense,
1106 or space technology production.—
1107 1.a. Industrial machinery and equipment used in
1108 semiconductor technology facilities certified under subparagraph
1109 5. to manufacture, process, compound, or produce semiconductor
1110 technology products for sale or for use by these facilities are
1111 exempt from the tax imposed by this chapter. For purposes of
1112 this paragraph, industrial machinery and equipment includes
1113 molds, dies, machine tooling, other appurtenances or accessories
1114 to machinery and equipment, testing equipment, test beds,
1115 computers, and software, whether purchased or self-fabricated,
1116 and, if self-fabricated, includes materials and labor for
1117 design, fabrication, and assembly.
1118 b. Industrial machinery and equipment used in defense or
1119 space technology facilities certified under subparagraph 5. to
1120 design, manufacture, assemble, process, compound, or produce
1121 defense technology products or space technology products for
1122 sale or for use by these facilities are exempt from the tax
1123 imposed by this chapter.
1124 2. Building materials purchased for use in manufacturing or
1125 expanding clean rooms in semiconductor-manufacturing facilities
1126 are exempt from the tax imposed by this chapter.
1127 3. In addition to meeting the criteria mandated by
1128 subparagraph 1. or subparagraph 2., a business must be certified
1129 by the Department of Economic Opportunity in order to qualify
1130 for exemption under this paragraph.
1131 4. For items purchased tax-exempt pursuant to this
1132 paragraph, possession of a written certification from the
1133 purchaser, certifying the purchaser’s entitlement to the
1134 exemption, relieves the seller of the responsibility of
1135 collecting the tax on the sale of such items, and the department
1136 shall look solely to the purchaser for recovery of the tax if it
1137 determines that the purchaser was not entitled to the exemption.
1138 5.a. To be eligible to receive the exemption provided by
1139 subparagraph 1. or subparagraph 2., a qualifying business entity
1140 shall initially apply to Enterprise Florida, Inc. The original
1141 certification is valid for a period of 2 years. In lieu of
1142 submitting a new application, the original certification may be
1143 renewed biennially by submitting to the Department of Economic
1144 Opportunity a statement, certified under oath, that there has
1145 not been a material change in the conditions or circumstances
1146 entitling the business entity to the original certification. The
1147 initial application and the certification renewal statement
1148 shall be developed by the Department of Economic Opportunity.
1149 b. The Division of Strategic Business Development of the
1150 Department of Economic Opportunity shall review each submitted
1151 initial application and determine whether or not the application
1152 is complete within 5 working days. Once complete, the division
1153 shall, within 10 working days, evaluate the application and
1154 recommend approval or disapproval to the Department of Economic
1155 Opportunity.
1156 c. Upon receipt of the initial application and
1157 recommendation from the division or upon receipt of a
1158 certification renewal statement, the Department of Economic
1159 Opportunity shall certify within 5 working days those applicants
1160 who are found to meet the requirements of this section and
1161 notify the applicant of the original certification or
1162 certification renewal. If the Department of Economic Opportunity
1163 finds that the applicant does not meet the requirements, it
1164 shall notify the applicant and Enterprise Florida, Inc., within
1165 10 working days that the application for certification has been
1166 denied and the reasons for denial. The Department of Economic
1167 Opportunity has final approval authority for certification under
1168 this section.
1169 d. The initial application and certification renewal
1170 statement must indicate, for program evaluation purposes only,
1171 the average number of full-time equivalent employees at the
1172 facility over the preceding calendar year, the average wage and
1173 benefits paid to those employees over the preceding calendar
1174 year, the total investment made in real and tangible personal
1175 property over the preceding calendar year, and the total value
1176 of tax-exempt purchases and taxes exempted during the previous
1177 year. The department shall assist the Department of Economic
1178 Opportunity in evaluating and verifying information provided in
1179 the application for exemption.
1180 e. The Department of Economic Opportunity may use the
1181 information reported on the initial application and
1182 certification renewal statement for evaluation purposes only.
1183 6. A business certified to receive this exemption may elect
1184 to designate one or more state universities or community
1185 colleges as recipients of up to 100 percent of the amount of the
1186 exemption. To receive these funds, the institution must agree to
1187 match the funds with equivalent cash, programs, services, or
1188 other in-kind support on a one-to-one basis for research and
1189 development projects requested by the certified business. The
1190 rights to any patents, royalties, or real or intellectual
1191 property must be vested in the business unless otherwise agreed
1192 to by the business and the university or community college.
1193 7. As used in this paragraph, the term:
1194 a. “Semiconductor technology products” means raw
1195 semiconductor wafers or semiconductor thin films that are
1196 transformed into semiconductor memory or logic wafers, including
1197 wafers containing mixed memory and logic circuits; related
1198 assembly and test operations; active-matrix flat panel displays;
1199 semiconductor chips; semiconductor lasers; optoelectronic
1200 elements; and related semiconductor technology products as
1201 determined by the Department of Economic Opportunity.
1202 b. “Clean rooms” means manufacturing facilities enclosed in
1203 a manner that meets the clean manufacturing requirements
1204 necessary for high-technology semiconductor-manufacturing
1205 environments.
1206 c. “Defense technology products” means products that have a
1207 military application, including, but not limited to, weapons,
1208 weapons systems, guidance systems, surveillance systems,
1209 communications or information systems, munitions, aircraft,
1210 vessels, or boats, or components thereof, which are intended for
1211 military use and manufactured in performance of a contract with
1212 the United States Department of Defense or the military branch
1213 of a recognized foreign government or a subcontract thereunder
1214 which relates to matters of national defense.
1215 d. “Space technology products” means products that are
1216 specifically designed or manufactured for application in space
1217 activities, including, but not limited to, space launch
1218 vehicles, space flight vehicles, missiles, satellites or
1219 research payloads, avionics, and associated control systems and
1220 processing systems and components of any of the foregoing. The
1221 term does not include products that are designed or manufactured
1222 for general commercial aviation or other uses even though those
1223 products may also serve an incidental use in space applications.
1224 (k) Samples.—Paint color card samples, flooring and wall
1225 samples, fabric swatch samples, window covering samples, and
1226 similar samples, when such samples serve no useful purpose other
1227 than as a comparison of color, texture, or design; are provided
1228 by the manufacturer to a dealer or ultimate consumer for no
1229 charge; and are given away by the dealer to the ultimate
1230 consumer for no charge, are exempt.
1231 (l) Growth enhancers or performance enhancers for cattle.
1232 There is exempt from the tax imposed by this chapter the sale of
1233 performance-enhancing or growth-enhancing products for cattle.
1234 (m) Educational materials purchased by certain child care
1235 facilities.—Educational materials, such as glue, paper, paints,
1236 crayons, unique craft items, scissors, books, and educational
1237 toys, purchased by a child care facility that meets the
1238 standards delineated in s. 402.305, is licensed under s.
1239 402.308, holds a current Gold Seal Quality Care designation
1240 pursuant to s. 402.281, and provides basic health insurance to
1241 all employees are exempt from the taxes imposed by this chapter.
1242 For purposes of this paragraph, the term “basic health
1243 insurance” shall be defined and promulgated in rules developed
1244 jointly by the Department of Children and Family Services, the
1245 Agency for Health Care Administration, and the Financial
1246 Services Commission.
1247 (n) Materials for construction of single-family homes in
1248 certain areas.—
1249 1. As used in this paragraph, the term:
1250 a. “Building materials” means tangible personal property
1251 that becomes a component part of a qualified home.
1252 b. “Qualified home” means a single-family home having an
1253 appraised value of no more than $160,000 which is located in an
1254 enterprise zone, empowerment zone, or Front Porch Florida
1255 Community and which is constructed and occupied by the owner
1256 thereof for residential purposes.
1257 c. “Substantially completed” has the same meaning as
1258 provided in s. 192.042(1).
1259 2. Building materials used in the construction of a
1260 qualified home and the costs of labor associated with the
1261 construction of a qualified home are exempt from the tax imposed
1262 by this chapter upon an affirmative showing to the satisfaction
1263 of the department that the requirements of this paragraph have
1264 been met. This exemption inures to the owner through a refund of
1265 previously paid taxes. To receive this refund, the owner must
1266 file an application under oath with the department which
1267 includes:
1268 a. The name and address of the owner.
1269 b. The address and assessment roll parcel number of the
1270 home for which a refund is sought.
1271 c. A copy of the building permit issued for the home.
1272 d. A certification by the local building code inspector
1273 that the home is substantially completed.
1274 e. A sworn statement, under penalty of perjury, from the
1275 general contractor licensed in this state with whom the owner
1276 contracted to construct the home, which statement lists the
1277 building materials used in the construction of the home and the
1278 actual cost thereof, the labor costs associated with such
1279 construction, and the amount of sales tax paid on these
1280 materials and labor costs. If a general contractor was not used,
1281 the owner shall provide this information in a sworn statement,
1282 under penalty of perjury. Copies of invoices evidencing payment
1283 of sales tax must be attached to the sworn statement.
1284 f. A sworn statement, under penalty of perjury, from the
1285 owner affirming that he or she is occupying the home for
1286 residential purposes.
1287 3. An application for a refund under this paragraph must be
1288 submitted to the department within 6 months after the date the
1289 home is deemed to be substantially completed by the local
1290 building code inspector. Within 30 working days after receipt of
1291 the application, the department shall determine if it meets the
1292 requirements of this paragraph. A refund approved pursuant to
1293 this paragraph shall be made within 30 days after formal
1294 approval of the application by the department.
1295 4. The department shall establish by rule an application
1296 form and criteria for establishing eligibility for exemption
1297 under this paragraph.
1298 5. The exemption shall apply to purchases of materials on
1299 or after July 1, 2000.
1300 (o) Building materials in redevelopment projects.—
1301 1. As used in this paragraph, the term:
1302 a. “Building materials” means tangible personal property
1303 that becomes a component part of a housing project or a mixed
1304 use project.
1305 b. “Housing project” means the conversion of an existing
1306 manufacturing or industrial building to housing units in an
1307 urban high-crime area, enterprise zone, empowerment zone, Front
1308 Porch Community, designated brownfield area, or urban infill
1309 area and in which the developer agrees to set aside at least 20
1310 percent of the housing units in the project for low-income and
1311 moderate-income persons or the construction in a designated
1312 brownfield area of affordable housing for persons described in
1313 s. 420.0004(9), (11), (12), or (17) or in s. 159.603(7).
1314 c. “Mixed-use project” means the conversion of an existing
1315 manufacturing or industrial building to mixed-use units that
1316 include artists’ studios, art and entertainment services, or
1317 other compatible uses. A mixed-use project must be located in an
1318 urban high-crime area, enterprise zone, empowerment zone, Front
1319 Porch Community, designated brownfield area, or urban infill
1320 area, and the developer must agree to set aside at least 20
1321 percent of the square footage of the project for low-income and
1322 moderate-income housing.
1323 d. “Substantially completed” has the same meaning as
1324 provided in s. 192.042(1).
1325 2. Building materials used in the construction of a housing
1326 project or mixed-use project are exempt from the tax imposed by
1327 this chapter upon an affirmative showing to the satisfaction of
1328 the department that the requirements of this paragraph have been
1329 met. This exemption inures to the owner through a refund of
1330 previously paid taxes. To receive this refund, the owner must
1331 file an application under oath with the department which
1332 includes:
1333 a. The name and address of the owner.
1334 b. The address and assessment roll parcel number of the
1335 project for which a refund is sought.
1336 c. A copy of the building permit issued for the project.
1337 d. A certification by the local building code inspector
1338 that the project is substantially completed.
1339 e. A sworn statement, under penalty of perjury, from the
1340 general contractor licensed in this state with whom the owner
1341 contracted to construct the project, which statement lists the
1342 building materials used in the construction of the project and
1343 the actual cost thereof, and the amount of sales tax paid on
1344 these materials. If a general contractor was not used, the owner
1345 shall provide this information in a sworn statement, under
1346 penalty of perjury. Copies of invoices evidencing payment of
1347 sales tax must be attached to the sworn statement.
1348 3. An application for a refund under this paragraph must be
1349 submitted to the department within 6 months after the date the
1350 project is deemed to be substantially completed by the local
1351 building code inspector. Within 30 working days after receipt of
1352 the application, the department shall determine if it meets the
1353 requirements of this paragraph. A refund approved pursuant to
1354 this paragraph shall be made within 30 days after formal
1355 approval of the application by the department.
1356 4. The department shall establish by rule an application
1357 form and criteria for establishing eligibility for exemption
1358 under this paragraph.
1359 5. The exemption shall apply to purchases of materials on
1360 or after July 1, 2000.
1361 (p) Community contribution tax credit for donations.—
1362 1. Authorization.—Persons who are registered with the
1363 department under s. 212.18 to collect or remit sales or use tax
1364 and who make donations to eligible sponsors are eligible for tax
1365 credits against their state sales and use tax liabilities as
1366 provided in this paragraph:
1367 a. The credit shall be computed as 50 percent of the
1368 person’s approved annual community contribution.
1369 b. The credit shall be granted as a refund against state
1370 sales and use taxes reported on returns and remitted in the 12
1371 months preceding the date of application to the department for
1372 the credit as required in sub-subparagraph 3.c. If the annual
1373 credit is not fully used through such refund because of
1374 insufficient tax payments during the applicable 12-month period,
1375 the unused amount may be included in an application for a refund
1376 made pursuant to sub-subparagraph 3.c. in subsequent years
1377 against the total tax payments made for such year. Carryover
1378 credits may be applied for a 3-year period without regard to any
1379 time limitation that would otherwise apply under s. 215.26.
1380 c. A person may not receive more than $200,000 in annual
1381 tax credits for all approved community contributions made in any
1382 one year.
1383 d. All proposals for the granting of the tax credit require
1384 the prior approval of the Department of Economic Opportunity.
1385 e. The total amount of tax credits which may be granted for
1386 all programs approved under this paragraph, s. 220.183, and s.
1387 624.5105 is $10.5 million annually for projects that provide
1388 homeownership opportunities for low-income or very-low-income
1389 households as defined in s. 420.9071(19) and (28) and $3.5
1390 million annually for all other projects.
1391 f. A person who is eligible to receive the credit provided
1392 for in this paragraph, s. 220.183, or s. 624.5105 may receive
1393 the credit only under the one section of the person’s choice.
1394 2. Eligibility requirements.—
1395 a. A community contribution by a person must be in the
1396 following form:
1397 (I) Cash or other liquid assets;
1398 (II) Real property;
1399 (III) Goods or inventory; or
1400 (IV) Other physical resources as identified by the
1401 Department of Economic Opportunity.
1402 b. All community contributions must be reserved exclusively
1403 for use in a project. As used in this sub-subparagraph, the term
1404 “project” means any activity undertaken by an eligible sponsor
1405 which is designed to construct, improve, or substantially
1406 rehabilitate housing that is affordable to low-income or very
1407 low-income households as defined in s. 420.9071(19) and (28);
1408 designed to provide commercial, industrial, or public resources
1409 and facilities; or designed to improve entrepreneurial and job
1410 development opportunities for low-income persons. A project may
1411 be the investment necessary to increase access to high-speed
1412 broadband capability in rural communities with enterprise zones,
1413 including projects that result in improvements to communications
1414 assets that are owned by a business. A project may include the
1415 provision of museum educational programs and materials that are
1416 directly related to any project approved between January 1,
1417 1996, and December 31, 1999, and located in an enterprise zone
1418 designated pursuant to s. 290.0065. This paragraph does not
1419 preclude projects that propose to construct or rehabilitate
1420 housing for low-income or very-low-income households on
1421 scattered sites. With respect to housing, contributions may be
1422 used to pay the following eligible low-income and very-low
1423 income housing-related activities:
1424 (I) Project development impact and management fees for low
1425 income or very-low-income housing projects;
1426 (II) Down payment and closing costs for eligible persons,
1427 as defined in s. 420.9071(19) and (28);
1428 (III) Administrative costs, including housing counseling
1429 and marketing fees, not to exceed 10 percent of the community
1430 contribution, directly related to low-income or very-low-income
1431 projects; and
1432 (IV) Removal of liens recorded against residential property
1433 by municipal, county, or special district local governments when
1434 satisfaction of the lien is a necessary precedent to the
1435 transfer of the property to an eligible person, as defined in s.
1436 420.9071(19) and (28), for the purpose of promoting home
1437 ownership. Contributions for lien removal must be received from
1438 a nonrelated third party.
1439 c. The project must be undertaken by an “eligible sponsor,”
1440 which includes:
1441 (I) A community action program;
1442 (II) A nonprofit community-based development organization
1443 whose mission is the provision of housing for low-income or
1444 very-low-income households or increasing entrepreneurial and
1445 job-development opportunities for low-income persons;
1446 (III) A neighborhood housing services corporation;
1447 (IV) A local housing authority created under chapter 421;
1448 (V) A community redevelopment agency created under s.
1449 163.356;
1450 (VI) A historic preservation district agency or
1451 organization;
1452 (VII) A regional workforce board;
1453 (VIII) A direct-support organization as provided in s.
1454 1009.983;
1455 (IX) An enterprise zone development agency created under s.
1456 290.0056;
1457 (X) A community-based organization incorporated under
1458 chapter 617 which is recognized as educational, charitable, or
1459 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
1460 and whose bylaws and articles of incorporation include
1461 affordable housing, economic development, or community
1462 development as the primary mission of the corporation;
1463 (XI) Units of local government;
1464 (XII) Units of state government; or
1465 (XIII) Any other agency that the Department of Economic
1466 Opportunity designates by rule.
1467
1468 In no event may a contributing person have a financial interest
1469 in the eligible sponsor.
1470 d. The project must be located in an area designated an
1471 enterprise zone or a Front Porch Florida Community, unless the
1472 project increases access to high-speed broadband capability for
1473 rural communities with enterprise zones but is physically
1474 located outside the designated rural zone boundaries. Any
1475 project designed to construct or rehabilitate housing for low
1476 income or very-low-income households as defined in s.
1477 420.9071(19) and (28) is exempt from the area requirement of
1478 this sub-subparagraph.
1479 e.(I) If, during the first 10 business days of the state
1480 fiscal year, eligible tax credit applications for projects that
1481 provide homeownership opportunities for low-income or very-low
1482 income households as defined in s. 420.9071(19) and (28) are
1483 received for less than the annual tax credits available for
1484 those projects, the Department of Economic Opportunity shall
1485 grant tax credits for those applications and shall grant
1486 remaining tax credits on a first-come, first-served basis for
1487 any subsequent eligible applications received before the end of
1488 the state fiscal year. If, during the first 10 business days of
1489 the state fiscal year, eligible tax credit applications for
1490 projects that provide homeownership opportunities for low-income
1491 or very-low-income households as defined in s. 420.9071(19) and
1492 (28) are received for more than the annual tax credits available
1493 for those projects, the Department of Economic Opportunity shall
1494 grant the tax credits for those applications as follows:
1495 (A) If tax credit applications submitted for approved
1496 projects of an eligible sponsor do not exceed $200,000 in total,
1497 the credits shall be granted in full if the tax credit
1498 applications are approved.
1499 (B) If tax credit applications submitted for approved
1500 projects of an eligible sponsor exceed $200,000 in total, the
1501 amount of tax credits granted pursuant to sub-sub-sub
1502 subparagraph (A) shall be subtracted from the amount of
1503 available tax credits, and the remaining credits shall be
1504 granted to each approved tax credit application on a pro rata
1505 basis.
1506 (II) If, during the first 10 business days of the state
1507 fiscal year, eligible tax credit applications for projects other
1508 than those that provide homeownership opportunities for low
1509 income or very-low-income households as defined in s.
1510 420.9071(19) and (28) are received for less than the annual tax
1511 credits available for those projects, the Department of Economic
1512 Opportunity shall grant tax credits for those applications and
1513 shall grant remaining tax credits on a first-come, first-served
1514 basis for any subsequent eligible applications received before
1515 the end of the state fiscal year. If, during the first 10
1516 business days of the state fiscal year, eligible tax credit
1517 applications for projects other than those that provide
1518 homeownership opportunities for low-income or very-low-income
1519 households as defined in s. 420.9071(19) and (28) are received
1520 for more than the annual tax credits available for those
1521 projects, the Department of Economic Opportunity shall grant the
1522 tax credits for those applications on a pro rata basis.
1523 3. Application requirements.—
1524 a. Any eligible sponsor seeking to participate in this
1525 program must submit a proposal to the Department of Economic
1526 Opportunity which sets forth the name of the sponsor, a
1527 description of the project, and the area in which the project is
1528 located, together with such supporting information as is
1529 prescribed by rule. The proposal must also contain a resolution
1530 from the local governmental unit in which the project is located
1531 certifying that the project is consistent with local plans and
1532 regulations.
1533 b. Any person seeking to participate in this program must
1534 submit an application for tax credit to the Department of
1535 Economic Opportunity which sets forth the name of the sponsor, a
1536 description of the project, and the type, value, and purpose of
1537 the contribution. The sponsor shall verify the terms of the
1538 application and indicate its receipt of the contribution, which
1539 verification must be in writing and accompany the application
1540 for tax credit. The person must submit a separate tax credit
1541 application to the Department of Economic Opportunity for each
1542 individual contribution that it makes to each individual
1543 project.
1544 c. Any person who has received notification from the
1545 Department of Economic Opportunity that a tax credit has been
1546 approved must apply to the department to receive the refund.
1547 Application must be made on the form prescribed for claiming
1548 refunds of sales and use taxes and be accompanied by a copy of
1549 the notification. A person may submit only one application for
1550 refund to the department within any 12-month period.
1551 4. Administration.—
1552 a. The Department of Economic Opportunity may adopt rules
1553 pursuant to ss. 120.536(1) and 120.54 necessary to administer
1554 this paragraph, including rules for the approval or disapproval
1555 of proposals by a person.
1556 b. The decision of the Department of Economic Opportunity
1557 must be in writing, and, if approved, the notification shall
1558 state the maximum credit allowable to the person. Upon approval,
1559 the Department of Economic Opportunity shall transmit a copy of
1560 the decision to the Department of Revenue.
1561 c. The Department of Economic Opportunity shall
1562 periodically monitor all projects in a manner consistent with
1563 available resources to ensure that resources are used in
1564 accordance with this paragraph; however, each project must be
1565 reviewed at least once every 2 years.
1566 d. The Department of Economic Opportunity shall, in
1567 consultation with the statewide and regional housing and
1568 financial intermediaries, market the availability of the
1569 community contribution tax credit program to community-based
1570 organizations.
1571 5. Expiration.—This paragraph expires June 30, 2015;
1572 however, any accrued credit carryover that is unused on that
1573 date may be used until the expiration of the 3-year carryover
1574 period for such credit.
1575 (q) Entertainment industry tax credit; authorization;
1576 eligibility for credits.—The credits against the state sales tax
1577 authorized pursuant to s. 288.1254 shall be deducted from any
1578 sales and use tax remitted by the dealer to the department by
1579 electronic funds transfer and may only be deducted on a sales
1580 and use tax return initiated through electronic data
1581 interchange. The dealer shall separately state the credit on the
1582 electronic return. The net amount of tax due and payable must be
1583 remitted by electronic funds transfer. If the credit for the
1584 qualified expenditures is larger than the amount owed on the
1585 sales and use tax return that is eligible for the credit, the
1586 unused amount of the credit may be carried forward to a
1587 succeeding reporting period as provided in s. 288.1254(4)(e). A
1588 dealer may only obtain a credit using the method described in
1589 this subparagraph. A dealer is not authorized to obtain a credit
1590 by applying for a refund.
1591 (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.—
1592 (a) There are also exempt from the tax imposed by this
1593 chapter sales made to the United States Government, a state, or
1594 any county, municipality, or political subdivision of a state
1595 when payment is made directly to the dealer by the governmental
1596 entity. This exemption shall not inure to any transaction
1597 otherwise taxable under this chapter when payment is made by a
1598 government employee by any means, including, but not limited to,
1599 cash, check, or credit card when that employee is subsequently
1600 reimbursed by the governmental entity. This exemption does not
1601 include sales, rental, use, consumption, or storage for use in
1602 any political subdivision or municipality in this state of
1603 machines and equipment and parts and accessories therefor used
1604 in the generation, transmission, or distribution of electrical
1605 energy by systems owned and operated by a political subdivision
1606 in this state for transmission or distribution expansion.
1607 Likewise exempt are charges for services rendered by radio and
1608 television stations, including line charges, talent fees, or
1609 license fees and charges for films, videotapes, and
1610 transcriptions used in producing radio or television broadcasts.
1611 The exemption provided in this subsection does not include
1612 sales, rental, use, consumption, or storage for use in any
1613 political subdivision or municipality in this state of machines
1614 and equipment and parts and accessories therefor used in
1615 providing two-way telecommunications services to the public for
1616 hire by the use of a telecommunications facility, as defined in
1617 s. 364.02(14), and for which a certificate is required under
1618 chapter 364, which facility is owned and operated by any county,
1619 municipality, or other political subdivision of the state. Any
1620 immunity of any political subdivision of the state or other
1621 entity of local government from taxation of the property used to
1622 provide telecommunication services that is taxed as a result of
1623 this section is hereby waived. However, the exemption provided
1624 in this subsection includes transactions taxable under this
1625 chapter which are for use by the operator of a public-use
1626 airport, as defined in s. 332.004, in providing such
1627 telecommunications services for the airport or its tenants,
1628 concessionaires, or licensees, or which are for use by a public
1629 hospital for the provision of such telecommunications services.
1630 (b) The exemption provided under this subsection does not
1631 include sales of tangible personal property made to contractors
1632 employed directly to or as agents of any such government or
1633 political subdivision when such tangible personal property goes
1634 into or becomes a part of public works owned by such government
1635 or political subdivision. A determination of whether a
1636 particular transaction is properly characterized as an exempt
1637 sale to a government entity or a taxable sale to a contractor
1638 shall be based upon the substance of the transaction rather than
1639 the form in which the transaction is cast. However, for sales of
1640 tangible personal property that go into or become a part of
1641 public works owned by a governmental entity, other than the
1642 Federal Government, a governmental entity claiming the exemption
1643 provided under this subsection shall certify to the dealer and
1644 the contractor the entity’s claim to the exemption by providing
1645 the dealer and the contractor a certificate of entitlement to
1646 the exemption for such sales. If the department later determines
1647 that such sales, in which the governmental entity provided the
1648 dealer and the contractor with a certificate of entitlement to
1649 the exemption, were not exempt sales to the governmental entity,
1650 the governmental entity shall be liable for any tax, penalty,
1651 and interest determined to be owed on such transactions.
1652 Possession by a dealer or contractor of a certificate of
1653 entitlement to the exemption from the governmental entity
1654 relieves the dealer from the responsibility of collecting tax on
1655 the sale and the contractor for any liability for tax, penalty,
1656 or interest related to the sale, and the department shall look
1657 solely to the governmental entity for recovery of tax, penalty,
1658 and interest if the department determines that the transaction
1659 was not an exempt sale to the governmental entity. The
1660 governmental entity may not transfer liability for such tax,
1661 penalty, and interest to another party by contract or agreement.
1662 (c) The department shall adopt rules for determining
1663 whether a particular transaction is properly characterized as an
1664 exempt sale to a governmental entity or a taxable sale to a
1665 contractor which give special consideration to factors that
1666 govern the status of the tangible personal property before being
1667 affixed to real property. In developing such rules, assumption
1668 of the risk of damage or loss is of paramount consideration in
1669 the determination. The department shall also adopt, by rule, a
1670 certificate of entitlement to exemption for use as provided in
1671 paragraph (b). The certificate shall require the governmental
1672 entity to affirm that it will comply with the requirements of
1673 this subsection and the rules adopted under paragraph (b) in
1674 order to qualify for the exemption and that it acknowledges its
1675 liability for any tax, penalty, or interest later determined by
1676 the department to be owed on such transactions.
1677 (3)(7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
1678 entity by this chapter do not inure to any transaction that is
1679 otherwise taxable under this chapter when payment is made by a
1680 representative or employee of the entity by any means,
1681 including, but not limited to, cash, check, or credit card, even
1682 when that representative or employee is subsequently reimbursed
1683 by the entity. In addition, exemptions provided to any entity by
1684 this subsection do not inure to any transaction that is
1685 otherwise taxable under this chapter unless the entity has
1686 obtained a sales tax exemption certificate from the department
1687 or the entity obtains or provides other documentation as
1688 required by the department. Eligible purchases or leases made
1689 with such a certificate must be in strict compliance with this
1690 subsection and departmental rules, and any person who makes an
1691 exempt purchase with a certificate that is not in strict
1692 compliance with this subsection and the rules is liable for and
1693 shall pay the tax. The department may adopt rules to administer
1694 this subsection.
1695 (a) Artificial commemorative flowers.—Exempt from the tax
1696 imposed by this chapter is the sale of artificial commemorative
1697 flowers by bona fide nationally chartered veterans’
1698 organizations.
1699 (b) Boiler fuels.—When purchased for use as a combustible
1700 fuel, purchases of natural gas, residual oil, recycled oil,
1701 waste oil, solid waste material, coal, sulfur, wood, wood
1702 residues or wood bark used in an industrial manufacturing,
1703 processing, compounding, or production process at a fixed
1704 location in this state are exempt from the taxes imposed by this
1705 chapter; however, such exemption shall not be allowed unless the
1706 purchaser signs a certificate stating that the fuel to be
1707 exempted is for the exclusive use designated herein. This
1708 exemption does not apply to the use of boiler fuels that are not
1709 used in manufacturing, processing, compounding, or producing
1710 items of tangible personal property for sale, or to the use of
1711 boiler fuels used by any firm subject to regulation by the
1712 Division of Hotels and Restaurants of the Department of Business
1713 and Professional Regulation.
1714 (c) Crustacea bait.—Also exempt from the tax imposed by
1715 this chapter is the purchase by commercial fishers of bait
1716 intended solely for use in the entrapment of Callinectes sapidus
1717 and Menippe mercenaria.
1718 (d) Feeds.—Feeds for poultry, ostriches, and livestock,
1719 including racehorses and dairy cows, are exempt.
1720 (e) Film rentals.—Film rentals are exempt when an admission
1721 is charged for viewing such film, and license fees and direct
1722 charges for films, videotapes, and transcriptions used by
1723 television or radio stations or networks are exempt.
1724 (f) Flags.—Also exempt are sales of the flag of the United
1725 States and the official state flag of Florida.
1726 (g) Florida Retired Educators Association and its local
1727 chapters.—Also exempt from payment of the tax imposed by this
1728 chapter are purchases of office supplies, equipment, and
1729 publications made by the Florida Retired Educators Association
1730 and its local chapters.
1731 (a)(h) Guide dogs for the blind.—Also exempt are the sale
1732 or rental of guide dogs for the blind, commonly referred to as
1733 “seeing-eye dogs,” and the sale of food or other items for such
1734 guide dogs.
1735 1. The department shall issue a consumer’s certificate of
1736 exemption to any blind person who holds an identification card
1737 as provided for in s. 413.091 and who either owns or rents, or
1738 contemplates the ownership or rental of, a guide dog for the
1739 blind. The consumer’s certificate of exemption shall be issued
1740 without charge and shall be of such size as to be capable of
1741 being carried in a wallet or billfold.
1742 2. The department shall make such rules concerning items
1743 exempt from tax under the provisions of this paragraph as may be
1744 necessary to provide that any person authorized to have a
1745 consumer’s certificate of exemption need only present such a
1746 certificate at the time of paying for exempt goods and shall not
1747 be required to pay any tax thereon.
1748 (b)(i) Hospital meals and rooms.—Also exempt from payment
1749 of the tax imposed by this chapter on rentals and meals are
1750 patients and inmates of any hospital or other physical plant or
1751 facility designed and operated primarily for the care of persons
1752 who are ill, aged, infirm, mentally or physically incapacitated,
1753 or otherwise dependent on special care or attention. Residents
1754 of a home for the aged are exempt from payment of taxes on meals
1755 provided through the facility. A home for the aged is defined as
1756 a facility that is licensed or certified in part or in whole
1757 under chapter 400, chapter 429, or chapter 651, or that is
1758 financed by a mortgage loan made or insured by the United States
1759 Department of Housing and Urban Development under s. 202, s. 202
1760 with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of
1761 the National Housing Act, or other such similar facility
1762 designed and operated primarily for the care of the aged.
1763 (c)(j) Household fuels.—Also exempt from payment of the tax
1764 imposed by this chapter are sales of utilities to residential
1765 households or owners of residential models in this state by
1766 utility companies who pay the gross receipts tax imposed under
1767 s. 203.01, and sales of fuel to residential households or owners
1768 of residential models, including oil, kerosene, liquefied
1769 petroleum gas, coal, wood, and other fuel products used in the
1770 household or residential model for the purposes of heating,
1771 cooking, lighting, and refrigeration, regardless of whether such
1772 sales of utilities and fuels are separately metered and billed
1773 direct to the residents or are metered and billed to the
1774 landlord. If any part of the utility or fuel is used for a
1775 nonexempt purpose, the entire sale is taxable. The landlord
1776 shall provide a separate meter for nonexempt utility or fuel
1777 consumption. For the purposes of this paragraph, licensed family
1778 day care homes shall also be exempt.
1779 (d)(k) Meals provided by certain nonprofit organizations.
1780 There is exempt from the tax imposed by this chapter the sale of
1781 prepared meals by a nonprofit volunteer organization to
1782 handicapped, elderly, or indigent persons when such meals are
1783 delivered as a charitable function by the organization to such
1784 persons at their places of residence.
1785 (l) Organizations providing special educational, cultural,
1786 recreational, and social benefits to minors.—Also exempt from
1787 the tax imposed by this chapter are sales or leases to and sales
1788 of donated property by nonprofit organizations which are
1789 incorporated pursuant to chapter 617 the primary purpose of
1790 which is providing activities that contribute to the development
1791 of good character or good sportsmanship, or to the educational
1792 or cultural development, of minors. This exemption is extended
1793 only to that level of the organization that has a salaried
1794 executive officer or an elected nonsalaried executive officer.
1795 For the purpose of this paragraph, the term “donated property”
1796 means any property transferred to such nonprofit organization
1797 for less than 50 percent of its fair market value.
1798 (m) Religious institutions.—
1799 1. There are exempt from the tax imposed by this chapter
1800 transactions involving sales or leases directly to religious
1801 institutions when used in carrying on their customary nonprofit
1802 religious activities or sales or leases of tangible personal
1803 property by religious institutions having an established
1804 physical place for worship at which nonprofit religious services
1805 and activities are regularly conducted and carried on.
1806 2. As used in this paragraph, the term “religious
1807 institutions” means churches, synagogues, and established
1808 physical places for worship at which nonprofit religious
1809 services and activities are regularly conducted and carried on.
1810 The term “religious institutions” includes nonprofit
1811 corporations the sole purpose of which is to provide free
1812 transportation services to church members, their families, and
1813 other church attendees. The term “religious institutions” also
1814 includes nonprofit state, nonprofit district, or other nonprofit
1815 governing or administrative offices the function of which is to
1816 assist or regulate the customary activities of religious
1817 institutions. The term “religious institutions” also includes
1818 any nonprofit corporation that is qualified as nonprofit under
1819 s. 501(c)(3) of the Internal Revenue Code of 1986, as amended,
1820 and that owns and operates a Florida television station, at
1821 least 90 percent of the programming of which station consists of
1822 programs of a religious nature and the financial support for
1823 which, exclusive of receipts for broadcasting from other
1824 nonprofit organizations, is predominantly from contributions
1825 from the general public. The term “religious institutions” also
1826 includes any nonprofit corporation that is qualified as
1827 nonprofit under s. 501(c)(3) of the Internal Revenue Code of
1828 1986, as amended, the primary activity of which is making and
1829 distributing audio recordings of religious scriptures and
1830 teachings to blind or visually impaired persons at no charge.
1831 The term “religious institutions” also includes any nonprofit
1832 corporation that is qualified as nonprofit under s. 501(c)(3) of
1833 the Internal Revenue Code of 1986, as amended, the sole or
1834 primary function of which is to provide, upon invitation,
1835 nonprofit religious services, evangelistic services, religious
1836 education, administrative assistance, or missionary assistance
1837 for a church, synagogue, or established physical place of
1838 worship at which nonprofit religious services and activities are
1839 regularly conducted.
1840 (n) Veterans’ organizations.—
1841 1. There are exempt from the tax imposed by this chapter
1842 transactions involving sales or leases to qualified veterans’
1843 organizations and their auxiliaries when used in carrying on
1844 their customary veterans’ organization activities.
1845 2. As used in this paragraph, the term “veterans’
1846 organizations” means nationally chartered or recognized
1847 veterans’ organizations, including, but not limited to, Florida
1848 chapters of the Paralyzed Veterans of America, Catholic War
1849 Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and
1850 the Disabled American Veterans, Department of Florida, Inc.,
1851 which hold current exemptions from federal income tax under s.
1852 501(c)(4) or (19) of the Internal Revenue Code of 1986, as
1853 amended.
1854 (o) Schools, colleges, and universities.—Also exempt from
1855 the tax imposed by this chapter are sales or leases to state
1856 tax-supported schools, colleges, or universities.
1857 (p) Section 501(c)(3) organizations.—Also exempt from the
1858 tax imposed by this chapter are sales or leases to organizations
1859 determined by the Internal Revenue Service to be currently
1860 exempt from federal income tax pursuant to s. 501(c)(3) of the
1861 Internal Revenue Code of 1986, as amended, when such leases or
1862 purchases are used in carrying on their customary nonprofit
1863 activities.
1864 (q) Resource recovery equipment.—Also exempt is resource
1865 recovery equipment which is owned and operated by or on behalf
1866 of any county or municipality, certified by the Department of
1867 Environmental Protection under the provisions of s. 403.715.
1868 (e)(r) School books and school lunches.—This exemption
1869 applies to school books used in regularly prescribed courses of
1870 study, and to school lunches served in public, parochial, or
1871 nonprofit schools operated for and attended by pupils of grades
1872 K through 12. Yearbooks, magazines, newspapers, directories,
1873 bulletins, and similar publications distributed by such
1874 educational institutions to their students are also exempt.
1875 School books and food sold or served at community colleges and
1876 other institutions of higher learning are taxable.
1877 (s) Tasting beverages.—Vinous and alcoholic beverages
1878 provided by distributors or vendors for the purpose of “wine
1879 tasting” and “spirituous beverage tasting” as contemplated under
1880 the provisions of ss. 564.06 and 565.12, respectively, are
1881 exempt from the tax imposed by this chapter.
1882 (t) Boats temporarily docked in state.—
1883 1. Notwithstanding the provisions of chapter 328,
1884 pertaining to the registration of vessels, a boat upon which the
1885 state sales or use tax has not been paid is exempt from the use
1886 tax under this chapter if it enters and remains in this state
1887 for a period not to exceed a total of 20 days in any calendar
1888 year calculated from the date of first dockage or slippage at a
1889 facility, registered with the department, that rents dockage or
1890 slippage space in this state. If a boat brought into this state
1891 for use under this paragraph is placed in a facility, registered
1892 with the department, for repairs, alterations, refitting, or
1893 modifications and such repairs, alterations, refitting, or
1894 modifications are supported by written documentation, the 20-day
1895 period shall be tolled during the time the boat is physically in
1896 the care, custody, and control of the repair facility, including
1897 the time spent on sea trials conducted by the facility. The 20
1898 day time period may be tolled only once within a calendar year
1899 when a boat is placed for the first time that year in the
1900 physical care, custody, and control of a registered repair
1901 facility; however, the owner may request and the department may
1902 grant an additional tolling of the 20-day period for purposes of
1903 repairs that arise from a written guarantee given by the
1904 registered repair facility, which guarantee covers only those
1905 repairs or modifications made during the first tolled period.
1906 Within 72 hours after the date upon which the registered repair
1907 facility took possession of the boat, the facility must have in
1908 its possession, on forms prescribed by the department, an
1909 affidavit which states that the boat is under its care, custody,
1910 and control and that the owner does not use the boat while in
1911 the facility. Upon completion of the repairs, alterations,
1912 refitting, or modifications, the registered repair facility
1913 must, within 72 hours after the date of release, have in its
1914 possession a copy of the release form which shows the date of
1915 release and any other information the department requires. The
1916 repair facility shall maintain a log that documents all
1917 alterations, additions, repairs, and sea trials during the time
1918 the boat is under the care, custody, and control of the
1919 facility. The affidavit shall be maintained by the registered
1920 repair facility as part of its records for as long as required
1921 by s. 213.35. When, within 6 months after the date of its
1922 purchase, a boat is brought into this state under this
1923 paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1924 s. 212.06(8) shall be tolled.
1925 2. During the period of repairs, alterations, refitting, or
1926 modifications and during the 20-day period referred to in
1927 subparagraph 1., the boat may be listed for sale, contracted for
1928 sale, or sold exclusively by a broker or dealer registered with
1929 the department without incurring a use tax under this chapter;
1930 however, the sales tax levied under this chapter applies to such
1931 sale.
1932 3. The mere storage of a boat at a registered repair
1933 facility does not qualify as a tax-exempt use in this state.
1934 4. As used in this paragraph, “registered repair facility”
1935 means:
1936 a. A full-service facility that:
1937 (I) Is located on a navigable body of water;
1938 (II) Has haulout capability such as a dry dock, travel
1939 lift, railway, or similar equipment to service craft under the
1940 care, custody, and control of the facility;
1941 (III) Has adequate piers and storage facilities to provide
1942 safe berthing of vessels in its care, custody, and control; and
1943 (IV) Has necessary shops and equipment to provide repair or
1944 warranty work on vessels under the care, custody, and control of
1945 the facility;
1946 b. A marina that:
1947 (I) Is located on a navigable body of water;
1948 (II) Has adequate piers and storage facilities to provide
1949 safe berthing of vessels in its care, custody, and control; and
1950 (III) Has necessary shops and equipment to provide repairs
1951 or warranty work on vessels; or
1952 c. A shoreside facility that:
1953 (I) Is located on a navigable body of water;
1954 (II) Has adequate piers and storage facilities to provide
1955 safe berthing of vessels in its care, custody, and control; and
1956 (III) Has necessary shops and equipment to provide repairs
1957 or warranty work.
1958 (u) Volunteer fire departments.—Also exempt are
1959 firefighting and rescue service equipment and supplies purchased
1960 by volunteer fire departments, duly chartered under the Florida
1961 Statutes as corporations not for profit.
1962 (v) Professional services.—
1963 1. Also exempted are professional, insurance, or personal
1964 service transactions that involve sales as inconsequential
1965 elements for which no separate charges are made.
1966 2. The personal service transactions exempted pursuant to
1967 subparagraph 1. do not exempt the sale of information services
1968 involving the furnishing of printed, mimeographed, or
1969 multigraphed matter, or matter duplicating written or printed
1970 matter in any other manner, other than professional services and
1971 services of employees, agents, or other persons acting in a
1972 representative or fiduciary capacity or information services
1973 furnished to newspapers and radio and television stations. As
1974 used in this subparagraph, the term “information services”
1975 includes the services of collecting, compiling, or analyzing
1976 information of any kind or nature and furnishing reports thereof
1977 to other persons.
1978 3. This exemption does not apply to any service warranty
1979 transaction taxable under s. 212.0506.
1980 4. This exemption does not apply to any service transaction
1981 taxable under s. 212.05(1)(i).
1982 (w) Certain newspaper, magazine, and newsletter
1983 subscriptions, shoppers, and community newspapers.—Likewise
1984 exempt are newspaper, magazine, and newsletter subscriptions in
1985 which the product is delivered to the customer by mail. Also
1986 exempt are free, circulated publications that are published on a
1987 regular basis, the content of which is primarily advertising,
1988 and that are distributed through the mail, home delivery, or
1989 newsstands. The exemption for newspaper, magazine, and
1990 newsletter subscriptions which is provided in this paragraph
1991 applies only to subscriptions entered into after March 1, 1997.
1992 (x) Sporting equipment brought into the state.—Sporting
1993 equipment brought into Florida, for a period of not more than 4
1994 months in any calendar year, used by an athletic team or an
1995 individual athlete in a sporting event is exempt from the use
1996 tax if such equipment is removed from the state within 7 days
1997 after the completion of the event.
1998 (y) Charter fishing vessels.—The charge for chartering any
1999 boat or vessel, with the crew furnished, solely for the purpose
2000 of fishing is exempt from the tax imposed under s. 212.04 or s.
2001 212.05. This exemption does not apply to any charge to enter or
2002 stay upon any “head-boat,” party boat, or other boat or vessel.
2003 Nothing in this paragraph shall be construed to exempt any boat
2004 from sales or use tax upon the purchase thereof except as
2005 provided in paragraph (t) and s. 212.05.
2006 (z) Vending machines sponsored by nonprofit or charitable
2007 organizations.—Also exempt are food or drinks for human
2008 consumption sold for 25 cents or less through a coin-operated
2009 vending machine sponsored by a nonprofit corporation qualified
2010 as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal
2011 Revenue Code of 1986, as amended.
2012 (aa) Certain commercial vehicles.—Also exempt is the sale,
2013 lease, or rental of a commercial motor vehicle as defined in s.
2014 207.002(2), when the following conditions are met:
2015 1. The sale, lease, or rental occurs between two commonly
2016 owned and controlled corporations;
2017 2. Such vehicle was titled and registered in this state at
2018 the time of the sale, lease, or rental; and
2019 3. Florida sales tax was paid on the acquisition of such
2020 vehicle by the seller, lessor, or renter.
2021 (bb) Community cemeteries.—Also exempt are purchases by any
2022 nonprofit corporation that has qualified under s. 501(c)(13) of
2023 the Internal Revenue Code of 1986, as amended, and is operated
2024 for the purpose of maintaining a cemetery that was donated to
2025 the community by deed.
2026 (cc) Works of art.—
2027 1. Also exempt are works of art sold to or used by an
2028 educational institution.
2029 2. This exemption also applies to the sale to or use in
2030 this state of any work of art by any person if it was purchased
2031 or imported exclusively for the purpose of being donated to any
2032 educational institution, or loaned to and made available for
2033 display by any educational institution, provided that the term
2034 of the loan agreement is for at least 10 years.
2035 3. The exemption provided by this paragraph for donations
2036 is allowed only if the person who purchased the work of art
2037 transfers title to the donated work of art to an educational
2038 institution. Such transfer of title shall be evidenced by an
2039 affidavit meeting requirements established by rule to document
2040 entitlement to the exemption. Nothing in this paragraph shall
2041 preclude a work of art donated to an educational institution
2042 from remaining in the possession of the donor or purchaser, as
2043 long as title to the work of art lies with the educational
2044 institution.
2045 4. A work of art is presumed to have been purchased in or
2046 imported into this state exclusively for loan as provided in
2047 subparagraph 2., if it is so loaned or placed in storage in
2048 preparation for such a loan within 90 days after purchase or
2049 importation, whichever is later; but a work of art is not deemed
2050 to be placed in storage in preparation for loan for purposes of
2051 this exemption if it is displayed at any place other than an
2052 educational institution.
2053 5. The exemptions provided by this paragraph are allowed
2054 only if the person who purchased the work of art gives to the
2055 vendor an affidavit meeting the requirements, established by
2056 rule, to document entitlement to the exemption. The person who
2057 purchased the work of art shall forward a copy of such affidavit
2058 to the Department of Revenue at the time it is issued to the
2059 vendor.
2060 6. The exemption for loans provided by subparagraph 2.
2061 applies only for the period during which a work of art is in the
2062 possession of the educational institution or is in storage
2063 before transfer of possession to that institution; and when it
2064 ceases to be so possessed or held, tax based upon the sales
2065 price paid by the owner is payable, and the statute of
2066 limitations provided in s. 95.091 shall begin to run at that
2067 time. However, tax shall not become due if the work of art is
2068 donated to an educational institution after the loan ceases.
2069 7. Any educational institution to which a work of art has
2070 been donated pursuant to this paragraph shall make available to
2071 the department the title to the work of art and any other
2072 relevant information. Any educational institution which has
2073 received a work of art on loan pursuant to this paragraph shall
2074 make available to the department information relating to the
2075 work of art. Any educational institution that transfers from its
2076 possession a work of art as defined by this paragraph which has
2077 been loaned to it must notify the Department of Revenue within
2078 60 days after the transfer.
2079 8. For purposes of the exemptions provided by this
2080 paragraph, the term:
2081 a. “Educational institutions” includes state tax-supported,
2082 parochial, church, and nonprofit private schools, colleges, or
2083 universities that conduct regular classes and courses of study
2084 required for accreditation by or membership in the Southern
2085 Association of Colleges and Schools, the Florida Council of
2086 Independent Schools, or the Florida Association of Christian
2087 Colleges and Schools, Inc.; nonprofit private schools that
2088 conduct regular classes and courses of study accepted for
2089 continuing education credit by a board of the Division of
2090 Medical Quality Assurance of the Department of Health; or
2091 nonprofit libraries, art galleries, performing arts centers that
2092 provide educational programs to school children, which programs
2093 involve performances or other educational activities at the
2094 performing arts center and serve a minimum of 50,000 school
2095 children a year, and museums open to the public.
2096 b. “Work of art” includes pictorial representations,
2097 sculpture, jewelry, antiques, stamp collections and coin
2098 collections, and other tangible personal property, the value of
2099 which is attributable predominantly to its artistic, historical,
2100 political, cultural, or social importance.
2101 (dd) Taxicab leases.—The lease of or license to use a
2102 taxicab or taxicab-related equipment and services provided by a
2103 taxicab company to an independent taxicab operator are exempt,
2104 provided, however, the exemptions provided under this paragraph
2105 only apply if sales or use tax has been paid on the acquisition
2106 of the taxicab and its related equipment.
2107 (ee) Aircraft repair and maintenance labor charges.—There
2108 shall be exempt from the tax imposed by this chapter all labor
2109 charges for the repair and maintenance of qualified aircraft,
2110 aircraft of more than 15,000 pounds maximum certified takeoff
2111 weight, and rotary wing aircraft of more than 10,000 pounds
2112 maximum certified takeoff weight. Except as otherwise provided
2113 in this chapter, charges for parts and equipment furnished in
2114 connection with such labor charges are taxable.
2115 (ff) Certain electricity or steam uses.—
2116 1. Subject to the provisions of subparagraph 4., charges
2117 for electricity or steam used to operate machinery and equipment
2118 at a fixed location in this state when such machinery and
2119 equipment is used to manufacture, process, compound, produce, or
2120 prepare for shipment items of tangible personal property for
2121 sale, or to operate pollution control equipment, recycling
2122 equipment, maintenance equipment, or monitoring or control
2123 equipment used in such operations are exempt to the extent
2124 provided in this paragraph. If 75 percent or more of the
2125 electricity or steam used at the fixed location is used to
2126 operate qualifying machinery or equipment, 100 percent of the
2127 charges for electricity or steam used at the fixed location are
2128 exempt. If less than 75 percent but 50 percent or more of the
2129 electricity or steam used at the fixed location is used to
2130 operate qualifying machinery or equipment, 50 percent of the
2131 charges for electricity or steam used at the fixed location are
2132 exempt. If less than 50 percent of the electricity or steam used
2133 at the fixed location is used to operate qualifying machinery or
2134 equipment, none of the charges for electricity or steam used at
2135 the fixed location are exempt.
2136 2. This exemption applies only to industries classified
2137 under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2138 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2139 and 39 and Industry Group Number 212. As used in this paragraph,
2140 “SIC” means those classifications contained in the Standard
2141 Industrial Classification Manual, 1987, as published by the
2142 Office of Management and Budget, Executive Office of the
2143 President.
2144 3. Possession by a seller of a written certification by the
2145 purchaser, certifying the purchaser’s entitlement to an
2146 exemption permitted by this subsection, relieves the seller from
2147 the responsibility of collecting the tax on the nontaxable
2148 amounts, and the department shall look solely to the purchaser
2149 for recovery of such tax if it determines that the purchaser was
2150 not entitled to the exemption.
2151 4. Such exemption shall be applied as follows: beginning
2152 July 1, 2000, 100 percent of the charges for such electricity or
2153 steam shall be exempt.
2154 (gg) Fair associations.—Also exempt from the tax imposed by
2155 this chapter is the sale, use, lease, rental, or grant of a
2156 license to use, made directly to or by a fair association, of
2157 real or tangible personal property; any charge made by a fair
2158 association, or its agents, for parking, admissions, or for
2159 temporary parking of vehicles used for sleeping quarters;
2160 rentals, subleases, and sublicenses of real or tangible personal
2161 property between the owner of the central amusement attraction
2162 and any owner of an amusement ride, as those terms are used in
2163 ss. 616.15(1)(b) and 616.242(3)(a), for the furnishing of
2164 amusement rides at a public fair or exposition; and other
2165 transactions of a fair association which are incurred directly
2166 by the fair association in the financing, construction, and
2167 operation of a fair, exposition, or other event or facility that
2168 is authorized by s. 616.08. As used in this paragraph, the terms
2169 “fair association” and “public fair or exposition” have the same
2170 meaning as those terms are defined in s. 616.001. This exemption
2171 does not apply to the sale of tangible personal property made by
2172 a fair association through an agent or independent contractor;
2173 sales of admissions and tangible personal property by a
2174 concessionaire, vendor, exhibitor, or licensee; or rentals and
2175 subleases of tangible personal property or real property between
2176 the owner of the central amusement attraction and a
2177 concessionaire, vendor, exhibitor, or licensee, except for the
2178 furnishing of amusement rides, which transactions are exempt.
2179 (hh) Solar energy systems.—Also exempt are solar energy
2180 systems or any component thereof. The Florida Solar Energy
2181 Center shall from time to time certify to the department a list
2182 of equipment and requisite hardware considered to be a solar
2183 energy system or a component thereof.
2184 (ii) Nonprofit cooperative hospital laundries.—Also exempt
2185 are sales or leases to nonprofit organizations that are
2186 incorporated under chapter 617 and which are treated, for
2187 federal income tax purposes, as cooperatives under subchapter T
2188 of the Internal Revenue Code, whose sole purpose is to offer
2189 laundry supplies and services to their members who must all be
2190 exempt from federal income tax pursuant to s. 501(c)(3) of the
2191 Internal Revenue Code. A member of a nonprofit cooperative
2192 hospital laundry whose Internal Revenue Code status changes
2193 shall, within 90 days after such change, divest all
2194 participation in the cooperative. The provision of laundry
2195 supplies and services to a nonmember business pursuant to a
2196 declaration of emergency under s. 252.36(2) and a written
2197 emergency plan of operation executed by the members of the
2198 cooperative does not invalidate or cause the denial of a
2199 cooperative’s certificate of exemption.
2200 (jj) Complimentary meals.—Also exempt from the tax imposed
2201 by this chapter are food or drinks that are furnished as part of
2202 a packaged room rate by any person offering for rent or lease
2203 any transient living accommodations as described in s.
2204 509.013(4)(a) which are licensed under part I of chapter 509 and
2205 which are subject to the tax under s. 212.03, if a separate
2206 charge or specific amount for the food or drinks is not shown.
2207 Such food or drinks are considered to be sold at retail as part
2208 of the total charge for the transient living accommodations.
2209 Moreover, the person offering the accommodations is not
2210 considered to be the consumer of items purchased in furnishing
2211 such food or drinks and may purchase those items under
2212 conditions of a sale for resale.
2213 (kk) Nonprofit corporation conducting the correctional work
2214 programs.—Products sold pursuant to s. 946.515 by the
2215 corporation organized pursuant to part II of chapter 946 are
2216 exempt from the tax imposed by this chapter. This exemption
2217 applies retroactively to July 1, 1983.
2218 (ll) Parent-teacher organizations, parent-teacher
2219 associations, and schools having grades K through 12.—
2220 1. Sales or leases to parent-teacher organizations and
2221 associations the purpose of which is to raise funds for schools
2222 that teach grades K through 12 and that are associated with
2223 schools having grades K through 12 are exempt from the tax
2224 imposed by this chapter.
2225 2. Parent-teacher organizations and associations described
2226 in subparagraph 1., and schools having grades K through 12, may
2227 pay tax to their suppliers on the cost price of school materials
2228 and supplies purchased, rented, or leased for resale or rental
2229 to students in grades K through 12, of items sold for
2230 fundraising purposes, and of items sold through vending machines
2231 located on the school premises, in lieu of collecting the tax
2232 imposed by this chapter from the purchaser. This paragraph also
2233 applies to food or beverages sold through vending machines
2234 located in the student lunchroom or dining room of a school
2235 having kindergarten through grade 12.
2236 (mm) Mobile home lot improvements.—Items purchased by
2237 developers for use in making improvements to a mobile home lot
2238 owned by the developer may be purchased tax-exempt as a sale for
2239 resale if made pursuant to a contract that requires the
2240 developer to sell a mobile home to a purchaser, place the mobile
2241 home on the lot, and make the improvements to the lot for a
2242 single lump-sum price. The developer must collect and remit
2243 sales tax on the entire lump-sum price.
2244 (nn) Veterans Administration.—When a veteran of the armed
2245 forces purchases an aircraft, boat, mobile home, motor vehicle,
2246 or other vehicle from a dealer pursuant to the provisions of 38
2247 U.S.C. s. 3902(a), or any successor provision of the United
2248 States Code, the amount that is paid directly to the dealer by
2249 the Veterans Administration is not taxable. However, any portion
2250 of the purchase price which is paid directly to the dealer by
2251 the veteran is taxable.
2252 (oo) Complimentary items.—There is exempt from the tax
2253 imposed by this chapter:
2254 1. Any food or drink, whether or not cooked or prepared on
2255 the premises, provided without charge as a sample or for the
2256 convenience of customers by a dealer that primarily sells food
2257 product items at retail.
2258 2. Any item given to a customer as part of a price
2259 guarantee plan related to point-of-sale errors by a dealer that
2260 primarily sells food products at retail.
2261
2262 The exemptions in this paragraph do not apply to businesses with
2263 the primary activity of serving prepared meals or alcoholic
2264 beverages for immediate consumption.
2265 (pp) Donated foods or beverages.—Any food or beverage
2266 donated by a dealer that sells food products at retail to a food
2267 bank or an organization that holds a current exemption from
2268 federal corporate income tax pursuant to s. 501(c) of the
2269 Internal Revenue Code of 1986, as amended, is exempt from the
2270 tax imposed by this chapter.
2271 (qq) Racing dogs.—The sale of a racing dog by its owner is
2272 exempt if the owner is also the breeder of the animal.
2273 (rr) Equipment used in aircraft repair and maintenance.
2274 There shall be exempt from the tax imposed by this chapter
2275 replacement engines, parts, and equipment used in the repair or
2276 maintenance of qualified aircraft, aircraft of more than 15,000
2277 pounds maximum certified takeoff weight, and rotary wing
2278 aircraft of more than 10,300 pounds maximum certified takeoff
2279 weight, when such parts or equipment are installed on such
2280 aircraft that is being repaired or maintained in this state.
2281 (ss) Aircraft sales or leases.—The sale or lease of a
2282 qualified aircraft or an aircraft of more than 15,000 pounds
2283 maximum certified takeoff weight for use by a common carrier is
2284 exempt from the tax imposed by this chapter. As used in this
2285 paragraph, “common carrier” means an airline operating under
2286 Federal Aviation Administration regulations contained in Title
2287 14, chapter I, part 121 or part 129 of the Code of Federal
2288 Regulations.
2289 (tt) Nonprofit water systems.—Sales or leases to a not-for
2290 profit corporation which holds a current exemption from federal
2291 income tax under s. 501(c)(4) or (12) of the Internal Revenue
2292 Code, as amended, are exempt from the tax imposed by this
2293 chapter if the sole or primary function of the corporation is to
2294 construct, maintain, or operate a water system in this state.
2295 (uu) Library cooperatives.—Sales or leases to library
2296 cooperatives certified under s. 257.41(2) are exempt from the
2297 tax imposed by this chapter.
2298 (vv) Advertising agencies.—
2299 1. As used in this paragraph, the term “advertising agency”
2300 means any firm that is primarily engaged in the business of
2301 providing advertising materials and services to its clients.
2302 2. The sale of advertising services by an advertising
2303 agency to a client is exempt from the tax imposed by this
2304 chapter. Also exempt from the tax imposed by this chapter are
2305 items of tangible personal property such as photographic
2306 negatives and positives, videos, films, galleys, mechanicals,
2307 veloxes, illustrations, digital audiotapes, analog tapes,
2308 printed advertisement copies, compact discs for the purpose of
2309 recording, digital equipment, and artwork and the services used
2310 to produce those items if the items are:
2311 a. Sold to an advertising agency that is acting as an agent
2312 for its clients pursuant to contract, and are created for the
2313 performance of advertising services for the clients;
2314 b. Produced, fabricated, manufactured, or otherwise created
2315 by an advertising agency for its clients, and are used in the
2316 performance of advertising services for the clients; or
2317 c. Sold by an advertising agency to its clients in the
2318 performance of advertising services for the clients, whether or
2319 not the charges for these items are marked up or separately
2320 stated.
2321
2322 The exemption provided by this subparagraph does not apply when
2323 tangible personal property such as film, paper, and videotapes
2324 is purchased to create items such as photographic negatives and
2325 positives, videos, films, galleys, mechanicals, veloxes,
2326 illustrations, and artwork that are sold to an advertising
2327 agency or produced in-house by an advertising agency on behalf
2328 of its clients.
2329 3. The items exempted from tax under subparagraph 2. and
2330 the creative services used by an advertising agency to design
2331 the advertising for promotional goods such as displays, display
2332 containers, exhibits, newspaper inserts, brochures, catalogues,
2333 direct mail letters or flats, shirts, hats, pens, pencils, key
2334 chains, or other printed goods or materials are not subject to
2335 tax. However, when such promotional goods are produced or
2336 reproduced for distribution, tax applies to the sales price
2337 charged to the client for such promotional goods.
2338 4. For items purchased by an advertising agency and exempt
2339 from tax under this paragraph, possession of an exemption
2340 certificate from the advertising agency certifying the agency’s
2341 entitlement to exemption relieves the vendor of the
2342 responsibility of collecting the tax on the sale of such items
2343 to the advertising agency, and the department shall look solely
2344 to the advertising agency for recovery of tax if it determines
2345 that the advertising agency was not entitled to the exemption.
2346 5. The exemptions provided by this paragraph apply
2347 retroactively, except that all taxes that have been collected
2348 must be remitted, and taxes that have been remitted before July
2349 1, 1999, on transactions that are subject to exemption under
2350 this paragraph are not subject to refund.
2351 6. The department may adopt rules that interpret or define
2352 the provisions of these exemptions and provide examples
2353 regarding the application of these exemptions.
2354 (ww) Bullion.—The sale of gold, silver, or platinum
2355 bullion, or any combination thereof, in a single transaction is
2356 exempt if the sales price exceeds $500. The dealer must maintain
2357 proper documentation, as prescribed by rule of the department,
2358 to identify that portion of a transaction which involves the
2359 sale of gold, silver, or platinum bullion and is exempt under
2360 this paragraph.
2361 (xx) Certain repair and labor charges.—
2362 1. Subject to the provisions of subparagraphs 2. and 3.,
2363 there is exempt from the tax imposed by this chapter all labor
2364 charges for the repair of, and parts and materials used in the
2365 repair of and incorporated into, industrial machinery and
2366 equipment which is used for the manufacture, processing,
2367 compounding, production, or preparation for shipping of items of
2368 tangible personal property at a fixed location within this
2369 state.
2370 2. This exemption applies only to industries classified
2371 under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2372 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2373 and 39 and Industry Group Number 212. As used in this
2374 subparagraph, “SIC” means those classifications contained in the
2375 Standard Industrial Classification Manual, 1987, as published by
2376 the Office of Management and Budget, Executive Office of the
2377 President.
2378 3. This exemption shall be applied as follows:
2379 a. Beginning July 1, 2000, 50 percent of such charges for
2380 repair parts and labor shall be exempt.
2381 b. Beginning July 1, 2001, 75 percent of such charges for
2382 repair parts and labor shall be exempt.
2383 c. Beginning July 1, 2002, 100 percent of such charges for
2384 repair parts and labor shall be exempt.
2385 (yy) Film and other printing supplies.—Also exempt are the
2386 following materials purchased, produced, or created by
2387 businesses classified under SIC Industry Numbers 275, 276, 277,
2388 278, or 279 for use in producing graphic matter for sale: film,
2389 photographic paper, dyes used for embossing and engraving,
2390 artwork, typography, lithographic plates, and negatives. As used
2391 in this paragraph, “SIC” means those classifications contained
2392 in the Standard Industrial Classification Manual, 1987, as
2393 published by the Office of Management and Budget, Executive
2394 Office of the President.
2395 (zz) People-mover systems.—People-mover systems, and parts
2396 thereof, which are purchased or manufactured by contractors
2397 employed either directly by or as agents for the United States
2398 Government, the state, a county, a municipality, a political
2399 subdivision of the state, or the public operator of a public-use
2400 airport as defined by s. 332.004(14) are exempt from the tax
2401 imposed by this chapter when the systems or parts go into or
2402 become part of publicly owned facilities. In the case of
2403 contractors who manufacture and install such systems and parts,
2404 this exemption extends to the purchase of component parts and
2405 all other manufacturing and fabrication costs. The department
2406 may provide a form to be used by contractors to provide to
2407 suppliers of people-mover systems or parts to certify the
2408 contractors’ eligibility for the exemption provided under this
2409 paragraph. As used in this paragraph, “people-mover systems”
2410 includes wheeled passenger vehicles and related control and
2411 power distribution systems that are part of a transportation
2412 system for use by the general public, regardless of whether such
2413 vehicles are operator-controlled or driverless, self-propelled
2414 or propelled by external power and control systems, or conducted
2415 on roads, rails, guidebeams, or other permanent structures that
2416 are an integral part of such transportation system. “Related
2417 control and power distribution systems” includes any electrical
2418 or electronic control or signaling equipment, but does not
2419 include the embedded wiring, conduits, or cabling used to
2420 transmit electrical or electronic signals among such control
2421 equipment, power distribution equipment, signaling equipment,
2422 and wheeled vehicles.
2423 (aaa) Florida Fire and Emergency Services Foundation.—Sales
2424 or leases to the Florida Fire and Emergency Services Foundation
2425 are exempt from the tax imposed by this chapter.
2426 (bbb) Railroad roadway materials.—Also exempt from the tax
2427 imposed by this chapter are railroad roadway materials used in
2428 the construction, repair, or maintenance of railways. Railroad
2429 roadway materials shall include rails, ties, ballasts,
2430 communication equipment, signal equipment, power transmission
2431 equipment, and any other track materials.
2432 (ccc) Advertising materials distributed free of charge by
2433 mail in an envelope.—Likewise exempt are materials consisting
2434 exclusively of advertisements, such as individual coupons or
2435 other individual cards, sheets, or pages of printed advertising,
2436 that are distributed free of charge by mail in an envelope for
2437 10 or more persons on a monthly, bimonthly, or other regular
2438 basis.
2439 (ddd) Certain delivery charges.—Separately stated charges
2440 that can be avoided at the option of the purchaser for the
2441 delivery, inspection, placement, or removal from packaging or
2442 shipping materials of furniture or appliances by the selling
2443 dealer at the premises of the purchaser or the removal of
2444 similar items from the premises of the purchaser are exempt. If
2445 any charge for delivery, inspection, placement, or removal of
2446 furniture or appliances includes the modification, assembly, or
2447 construction of such furniture or appliances, then all of the
2448 charges are taxable.
2449 (eee) Bookstore operations at a postsecondary educational
2450 institution.—Also exempt from payment of the tax imposed by this
2451 chapter on renting, leasing, letting, or granting a license for
2452 the use of any real property are payments to a postsecondary
2453 educational institution made by any person pursuant to a grant
2454 of the right to conduct bookstore operations on real property
2455 owned or leased by the postsecondary educational institution. As
2456 used in this paragraph, the term “bookstore operations” means
2457 activities consisting predominantly of sales, distribution, and
2458 provision of textbooks, merchandise, and services traditionally
2459 offered in college and university bookstores for the benefit of
2460 the institution’s students, faculty, and staff.
2461 (fff) Aircraft temporarily in the state.—
2462 1. An aircraft owned by a nonresident is exempt from the
2463 use tax imposed under this chapter if the aircraft enters and
2464 remains in this state for less than a total of 21 days during
2465 the 6-month period after the date of purchase. The temporary use
2466 of the aircraft and subsequent removal from this state may be
2467 proven by invoices for fuel, tie-down, or hangar charges issued
2468 by out-of-state vendors or suppliers or similar documentation
2469 that clearly and specifically identifies the aircraft. The
2470 exemption provided in this subparagraph is in addition to the
2471 exemptions provided in subparagraph 2. and s. 212.05(1)(a).
2472 2. An aircraft owned by a nonresident is exempt from the
2473 use tax imposed under this chapter if the aircraft enters or
2474 remains in this state exclusively for purposes of flight
2475 training, repairs, alterations, refitting, or modification. Such
2476 purposes shall be supported by written documentation issued by
2477 in-state vendors or suppliers which clearly and specifically
2478 identifies the aircraft. The exemption provided in this
2479 subparagraph is in addition to the exemptions provided in
2480 subparagraph 1. and s. 212.05(1)(a).
2481 (ggg) Fractional aircraft ownership programs.—The sale or
2482 use of aircraft primarily used in a fractional aircraft
2483 ownership program or of any parts or labor used in the
2484 completion, maintenance, repair, or overhaul of such aircraft is
2485 exempt from the tax imposed by this chapter. The exemption is
2486 not allowed unless the program manager of the fractional
2487 aircraft ownership program furnishes the dealer with a
2488 certificate stating that the lease, purchase, repair, or
2489 maintenance is for aircraft primarily used in a fractional
2490 aircraft ownership program and that the program manager
2491 qualifies for the exemption. If a program manager makes tax
2492 exempt purchases on a continual basis, the program manager may
2493 allow the dealer to keep the certificate on file. The program
2494 manager must inform a dealer that keeps the certificate on file
2495 if the program manager no longer qualifies for the exemption.
2496 The department may adopt rules to administer this paragraph,
2497 including rules determining the format of the certificate.
2498 (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2499 FOREIGN COMMERCE.—
2500 (a) The sale or use of vessels and parts thereof used to
2501 transport persons or property in interstate or foreign commerce,
2502 including commercial fishing vessels, is subject to the taxes
2503 imposed in this chapter only to the extent provided herein. The
2504 basis of the tax shall be the ratio of intrastate mileage to
2505 interstate or foreign mileage traveled by the carrier’s vessels
2506 which were used in interstate or foreign commerce and which had
2507 at least some Florida mileage during the previous fiscal year.
2508 The ratio would be determined at the close of the carrier’s
2509 fiscal year. However, during the fiscal year in which the vessel
2510 begins its initial operations in this state, the vessel’s
2511 mileage apportionment factor may be determined on the basis of
2512 an estimated ratio of anticipated miles in this state to
2513 anticipated total miles for that year and, subsequently,
2514 additional tax shall be paid on the vessel, or a refund may be
2515 applied for, on the basis of the actual ratio of the vessel’s
2516 miles in this state to its total miles for that year. This ratio
2517 shall be applied each month to the total Florida purchases of
2518 such vessels and parts thereof which are used in Florida to
2519 establish that portion of the total used and consumed in
2520 intrastate movement and subject to the tax at the applicable
2521 rate. The basis for imposition of any discretionary surtax shall
2522 be as set forth in s. 212.054. Items, appropriate to carry out
2523 the purposes for which a vessel is designed or equipped and
2524 used, purchased by the owner, operator, or agent of a vessel for
2525 use on board such vessel shall be deemed to be parts of the
2526 vessel upon which the same are used or consumed. Vessels and
2527 parts thereof used to transport persons or property in
2528 interstate and foreign commerce are hereby determined to be
2529 susceptible to a distinct and separate classification for
2530 taxation under the provisions of this chapter. Vessels and parts
2531 thereof used exclusively in intrastate commerce do not qualify
2532 for the proration of tax.
2533 (b) The partial exemption provided for in this subsection
2534 shall not be allowed unless the purchaser signs an affidavit
2535 stating that the item or items to be partially exempted are for
2536 the exclusive use designated herein and setting forth the extent
2537 of such partial exemption. Any person furnishing a false
2538 affidavit to such effect for the purpose of evading payment of
2539 any tax imposed under this chapter is subject to the penalties
2540 set forth in s. 212.12 and as otherwise provided by law.
2541 (c) It is the intent of the Legislature that neither
2542 subsection (4) nor this subsection shall be construed as
2543 imposing the tax provided by this chapter on vessels used as
2544 common carriers, contract carriers, or private carriers, engaged
2545 in interstate or foreign commerce, except to the extent provided
2546 by the pro rata formula provided in subsection (4) and in
2547 paragraph (a).
2548 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2549 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.—
2550 (a) Railroads that are licensed as common carriers by the
2551 Surface Transportation Board and parts thereof used to transport
2552 persons or property in interstate or foreign commerce are
2553 subject to tax imposed in this chapter only to the extent
2554 provided herein. The basis of the tax shall be the ratio of
2555 intrastate mileage to interstate or foreign mileage traveled by
2556 the carrier during the previous fiscal year of the carrier. Such
2557 ratio is to be determined at the close of the carrier’s fiscal
2558 year. However, during the fiscal year in which the railroad
2559 begins its initial operations in this state, the railroad’s
2560 mileage apportionment factor may be determined on the basis of
2561 an estimated ratio of anticipated miles in this state to
2562 anticipated total miles for that year and, subsequently,
2563 additional tax shall be paid on the railroad, or a refund may be
2564 applied for, on the basis of the actual ratio of the railroad’s
2565 miles in this state to its total miles for that year. This ratio
2566 shall be applied each month to the purchases of the railroad in
2567 this state which are used in this state to establish that
2568 portion of the total used and consumed in intrastate movement
2569 and subject to tax under this chapter. The basis for imposition
2570 of any discretionary surtax is set forth in s. 212.054.
2571 Railroads that are licensed as common carriers by the Surface
2572 Transportation Board and parts thereof used to transport persons
2573 or property in interstate and foreign commerce are hereby
2574 determined to be susceptible to a distinct and separate
2575 classification for taxation under the provisions of this
2576 chapter.
2577 (b) Motor vehicles that are engaged in interstate commerce
2578 as common carriers, and parts thereof, used to transport persons
2579 or property in interstate or foreign commerce are subject to tax
2580 imposed in this chapter only to the extent provided herein. The
2581 basis of the tax shall be the ratio of intrastate mileage to
2582 interstate or foreign mileage traveled by the carrier’s motor
2583 vehicles which were used in interstate or foreign commerce and
2584 which had at least some Florida mileage during the previous
2585 fiscal year of the carrier. Such ratio is to be determined at
2586 the close of the carrier’s fiscal year. However, during the
2587 fiscal year in which the carrier begins its initial operations
2588 in this state, the carrier’s mileage apportionment factor may be
2589 determined on the basis of an estimated ratio of anticipated
2590 miles in this state to anticipated total miles for that year
2591 and, subsequently, additional tax shall be paid on the carrier,
2592 or a refund may be applied for, on the basis of the actual ratio
2593 of the carrier’s miles in this state to its total miles for that
2594 year. This ratio shall be applied each month to the purchases in
2595 this state of such motor vehicles and parts thereof which are
2596 used in this state to establish that portion of the total used
2597 and consumed in intrastate movement and subject to tax under
2598 this chapter. The basis for imposition of any discretionary
2599 surtax is set forth in s. 212.054. Motor vehicles that are
2600 engaged in interstate commerce, and parts thereof, used to
2601 transport persons or property in interstate and foreign commerce
2602 are hereby determined to be susceptible to a distinct and
2603 separate classification for taxation under the provisions of
2604 this chapter. Motor vehicles and parts thereof used exclusively
2605 in intrastate commerce do not qualify for the proration of tax.
2606 For purposes of this paragraph, parts of a motor vehicle engaged
2607 in interstate commerce include a separate tank not connected to
2608 the fuel supply system of the motor vehicle into which diesel
2609 fuel is placed to operate a refrigeration unit or other
2610 equipment.
2611 (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2612 ANOTHER STATE.—
2613 (a) The tax collected on the sale of a new or used motor
2614 vehicle in this state to a resident of another state shall be an
2615 amount equal to the sales tax which would be imposed on such
2616 sale under the laws of the state of which the purchaser is a
2617 resident, except that such tax shall not exceed the tax that
2618 would otherwise be imposed under this chapter. At the time of
2619 the sale, the purchaser shall execute a notarized statement of
2620 his or her intent to license the vehicle in the state of which
2621 the purchaser is a resident within 45 days of the sale and of
2622 the fact of the payment to the State of Florida of a sales tax
2623 in an amount equivalent to the sales tax of his or her state of
2624 residence and shall submit the statement to the appropriate
2625 sales tax collection agency in his or her state of residence.
2626 Nothing in this subsection shall be construed to require the
2627 removal of the vehicle from this state following the filing of
2628 an intent to license the vehicle in the purchaser’s home state
2629 if the purchaser licenses the vehicle in his or her home state
2630 within 45 days after the date of sale.
2631 (b) Notwithstanding the partial exemption allowed in
2632 paragraph (a), a vehicle is subject to this state’s sales tax at
2633 the applicable state sales tax rate plus authorized surtaxes
2634 when the vehicle is purchased by a nonresident corporation or
2635 partnership and:
2636 1. An officer of the corporation is a resident of this
2637 state;
2638 2. A stockholder of the corporation who owns at least 10
2639 percent of the corporation is a resident of this state; or
2640 3. A partner in the partnership who has at least 10 percent
2641 ownership is a resident of this state.
2642
2643 However, if the vehicle is removed from this state within 45
2644 days after purchase and remains outside the state for a minimum
2645 of 180 days, the vehicle may qualify for the partial exemption
2646 allowed in paragraph (a) despite the residency of owners or
2647 stockholders of the purchasing entity.
2648 (c) Nothing herein shall require the payment of tax to the
2649 State of Florida for assessments made prior to July 1, 2001, if
2650 the tax imposed by this section has been paid to the state in
2651 which the vehicle was licensed and the department has assessed a
2652 like amount of tax on the same transactions. This provision
2653 shall apply retroactively to assessments that have been
2654 protested prior to August 1, 1999, and have not been paid on the
2655 date this act takes effect.
2656 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.—
2657 (a) The tax imposed on the sale by a manufacturer of
2658 flyable aircraft, who designs such aircraft, which sale may
2659 include necessary equipment and modifications placed on such
2660 flyable aircraft prior to delivery by the manufacturer, shall be
2661 an amount equal to the sales tax which would be imposed on such
2662 sale under the laws of the state in which the aircraft will be
2663 domiciled.
2664 (b) This partial exemption applies only if the purchaser is
2665 a resident of another state who will not use the aircraft in
2666 this state, or if the purchaser is a resident of another state
2667 and uses the aircraft in interstate or foreign commerce, or if
2668 the purchaser is a resident of a foreign country.
2669 (c) The maximum tax collectible under this subsection may
2670 not exceed 6 percent of the sales price of such aircraft. No
2671 Florida tax may be imposed on the sale of such aircraft if the
2672 state in which the aircraft will be domiciled does not allow
2673 Florida sales or use tax to be credited against its sales or use
2674 tax. Furthermore, no tax may be imposed on the sale of such
2675 aircraft if the state in which the aircraft will be domiciled
2676 has enacted a sales and use tax exemption for flyable aircraft
2677 or if the aircraft will be domiciled outside the United States.
2678 (d) The purchaser shall execute a sworn affidavit attesting
2679 that he or she is not a resident of this state and stating where
2680 the aircraft will be domiciled. If the aircraft is subsequently
2681 used in this state within 6 months of the time of purchase, in
2682 violation of the intent of this subsection, the purchaser shall
2683 be liable for payment of the full use tax imposed by this
2684 chapter and shall be subject to the penalty imposed by s.
2685 212.12(2), which penalty shall be mandatory. Notwithstanding the
2686 provisions of this paragraph, the owner of an aircraft purchased
2687 pursuant to this subsection may permit the aircraft to be
2688 returned to this state for repairs within 6 months after the
2689 date of sale without the aircraft being in violation of the law
2690 and without incurring liability for payment of tax or penalty on
2691 the purchase price of the aircraft, so long as the aircraft is
2692 removed from this state within 20 days after the completion of
2693 the repairs and such removal can be proven by invoices for fuel,
2694 tie-down, or hangar charges issued by out-of-state vendors or
2695 suppliers or similar documentation.
2696 (12) PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2697 VIDEO TAPES.—
2698 (a) There are exempt from the taxes imposed by this chapter
2699 the gross receipts from the sale or lease of, and the storage,
2700 use, or other consumption in this state of, master tapes or
2701 master records embodying sound, or master films or master video
2702 tapes; except that amounts paid to recording studios or motion
2703 picture or television studios for the tangible elements of such
2704 master tapes, records, films, or video tapes are taxable as
2705 otherwise provided in this chapter. This exemption will inure to
2706 the taxpayer upon presentation of the certificate of exemption
2707 issued to the taxpayer under the provisions of s. 288.1258.
2708 (b) For the purposes of this subsection, the term:
2709 1. “Amounts paid for the tangible elements” does not
2710 include any amounts paid for the copyrightable, artistic, or
2711 other intangible elements of such master tapes, records, films,
2712 or video tapes, whether designated as royalties or otherwise,
2713 including, but not limited to, services rendered in producing,
2714 fabricating, processing, or imprinting tangible personal
2715 property or any other services or production expenses in
2716 connection therewith which may otherwise be construed as
2717 constituting a “sale” under s. 212.02.
2718 2. “Master films or master video tapes” means films or
2719 video tapes utilized by the motion picture and television
2720 production industries in making visual images for reproduction.
2721 3. “Master tapes or master records embodying sound” means
2722 tapes, records, and other devices utilized by the recording
2723 industry in making recordings embodying sound.
2724 4. “Motion picture or television studio” means a facility
2725 in which film or video tape productions or parts of productions
2726 are made and which contains the necessary equipment and
2727 personnel for this purpose and includes a mobile unit or vehicle
2728 that is equipped in much the same manner as a stationary studio
2729 and used in the making of film or video tape productions.
2730 5. “Recording studio” means a place where, by means of
2731 mechanical or electronic devices, voices, music, or other sounds
2732 are transmitted to tapes, records, or other devices capable of
2733 reproducing sound.
2734 6. “Recording industry” means any person engaged in an
2735 occupation or business of making recordings embodying sound for
2736 a livelihood or for a profit.
2737 7. “Motion picture or television production industry” means
2738 any person engaged in an occupation or business for a livelihood
2739 or for profit of making visual motion picture or television
2740 visual images for showing on screen or television for
2741 theatrical, commercial, advertising, or educational purposes.
2742 (13) No transactions shall be exempt from the tax imposed
2743 by this chapter except those expressly exempted herein. All laws
2744 granting tax exemptions, to the extent they may be inconsistent
2745 or in conflict with this chapter, including, but not limited to,
2746 the following designated laws, shall yield to and be superseded
2747 by the provisions of this subsection: ss. 125.019, 153.76,
2748 154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395,
2749 215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834,
2750 616.07, and 623.09, and the following Laws of Florida, acts of
2751 the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
2752 30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
2753 1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
2754 16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61
2755 2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2756 chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2757 and s. 10, chapter 67-1681. This subsection does not supersede
2758 the authority of a local government to adopt financial and local
2759 government incentives pursuant to s. 163.2517.
2760 (14) TECHNICAL ASSISTANCE ADVISORY COMMITTEE.—The
2761 department shall establish a technical assistance advisory
2762 committee with public and private sector members, including
2763 representatives of both manufacturers and retailers, to advise
2764 the Department of Revenue and the Department of Health in
2765 determining the taxability of specific products and product
2766 lines pursuant to subsection (1) and paragraph (2)(a). In
2767 determining taxability and in preparing a list of specific
2768 products and product lines that are or are not taxable, the
2769 committee shall not be subject to the provisions of chapter 120.
2770 Private sector members shall not be compensated for serving on
2771 the committee.
2772 (15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.—
2773 (a) Beginning July 1, 1995, charges for electrical energy
2774 used by a qualified business at a fixed location in an
2775 enterprise zone in a municipality which has enacted an ordinance
2776 pursuant to s. 166.231(8) which provides for exemption of
2777 municipal utility taxes on such businesses or in an enterprise
2778 zone jointly authorized by a county and a municipality which has
2779 enacted an ordinance pursuant to s. 166.231(8) which provides
2780 for exemption of municipal utility taxes on such businesses
2781 shall receive an exemption equal to 50 percent of the tax
2782 imposed by this chapter, or, if no less than 20 percent of the
2783 employees of the business are residents of an enterprise zone,
2784 excluding temporary and part-time employees, the exemption shall
2785 be equal to 100 percent of the tax imposed by this chapter. A
2786 qualified business may receive such exemption for a period of 5
2787 years from the billing period beginning not more than 30 days
2788 following notification to the applicable utility company by the
2789 department that an exemption has been authorized pursuant to
2790 this subsection and s. 166.231(8).
2791 (b) To receive this exemption, a business must file an
2792 application, with the enterprise zone development agency having
2793 jurisdiction over the enterprise zone where the business is
2794 located, on a form provided by the department for the purposes
2795 of this subsection and s. 166.231(8). The application shall be
2796 made under oath and shall include:
2797 1. The name and location of the business.
2798 2. The identifying number assigned pursuant to s. 290.0065
2799 to the enterprise zone in which the business is located.
2800 3. The date on which electrical service is to be first
2801 initiated to the business.
2802 4. The name and mailing address of the entity from which
2803 electrical energy is to be purchased.
2804 5. The date of the application.
2805 6. The name of the city in which the business is located.
2806 7. If applicable, the name and address of each permanent
2807 employee of the business including, for each employee who is a
2808 resident of an enterprise zone, the identifying number assigned
2809 pursuant to s. 290.0065 to the enterprise zone in which the
2810 employee resides.
2811 8. Whether the business is a small business as defined by
2812 s. 288.703.
2813 (c) Within 10 working days after receipt of an application,
2814 the enterprise zone development agency shall review the
2815 application to determine if it contains all information required
2816 pursuant to paragraph (b) and meets the criteria set out in this
2817 subsection. The agency shall certify all applications that
2818 contain the information required pursuant to paragraph (b) and
2819 meet the criteria set out in this subsection as eligible to
2820 receive an exemption. If applicable, the agency shall also
2821 certify if 20 percent of the employees of the business are
2822 residents of an enterprise zone, excluding temporary and part
2823 time employees. The certification shall be in writing, and a
2824 copy of the certification shall be transmitted to the executive
2825 director of the Department of Revenue. The applicant shall be
2826 responsible for forwarding a certified application to the
2827 department within 6 months after the occurrence of the
2828 appropriate qualifying provision set out in paragraph (f).
2829 (d) If, in a subsequent audit conducted by the department,
2830 it is determined that the business did not meet the criteria
2831 mandated in this subsection, the amount of taxes exempted shall
2832 immediately be due and payable to the department by the
2833 business, together with the appropriate interest and penalty,
2834 computed from the due date of each bill for the electrical
2835 energy purchased as exempt under this subsection, in the manner
2836 prescribed by this chapter.
2837 (e) The department shall adopt rules governing applications
2838 for, issuance of, and the form of applications for the exemption
2839 authorized in this subsection and provisions for recapture of
2840 taxes exempted under this subsection, and the department may
2841 establish guidelines as to qualifications for exemption.
2842 (f) For the purpose of the exemption provided in this
2843 subsection, the term “qualified business” means a business which
2844 is:
2845 1. First occupying a new structure to which electrical
2846 service, other than that used for construction purposes, has not
2847 been previously provided or furnished;
2848 2. Newly occupying an existing, remodeled, renovated, or
2849 rehabilitated structure to which electrical service, other than
2850 that used for remodeling, renovation, or rehabilitation of the
2851 structure, has not been provided or furnished in the three
2852 preceding billing periods; or
2853 3. Occupying a new, remodeled, rebuilt, renovated, or
2854 rehabilitated structure for which a refund has been granted
2855 pursuant to paragraph (5)(g).
2856 (g) This subsection expires on the date specified in s.
2857 290.016 for the expiration of the Florida Enterprise Zone Act,
2858 except that:
2859 1. Paragraph (d) shall not expire; and
2860 2. Any qualified business which has been granted an
2861 exemption under this subsection prior to that date shall be
2862 allowed the full benefit of this exemption as if this subsection
2863 had not expired on that date.
2864 (16) EXEMPTIONS; SPACE ACTIVITIES.—
2865 (a) There shall be exempt from the tax imposed by this
2866 chapter:
2867 1. The sale, lease, use, storage, consumption, or
2868 distribution in this state of any orbital space facility, space
2869 propulsion system, or space vehicle, satellite, or station of
2870 any kind possessing space flight capacity, including the
2871 components thereof.
2872 2. The sale, lease, use, storage, consumption, or
2873 distribution in this state of tangible personal property placed
2874 on or used aboard any orbital space facility, space propulsion
2875 system, or space vehicle, satellite, or station of any kind,
2876 irrespective of whether such tangible personal property is
2877 returned to this state for subsequent use, storage, or
2878 consumption in any manner. This exemption is not affected by the
2879 failure of a launch to occur, or the destruction of a launch
2880 vehicle or any components thereof.
2881 (b) This subsection shall be strictly construed and
2882 enforced.
2883 (17) EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.—
2884 (a) Subject to paragraph (d), the tax imposed by this
2885 chapter does not apply to the sale to or use by a government
2886 contractor of overhead materials. The term “government
2887 contractor” includes prime contractors and subcontractors.
2888 (b) As used in this subsection, the term “overhead
2889 materials” means all tangible personal property, other than
2890 qualifying property as defined in s. 212.02(14)(a) and
2891 electricity, which is used or consumed in the performance of a
2892 qualifying contract, title to which property vests in or passes
2893 to the government under the contract.
2894 (c) As used in this subsection and in s. 212.02(14)(a), the
2895 term “qualifying contract” means a contract with the United
2896 States Department of Defense or the National Aeronautics and
2897 Space Administration, or a subcontract thereunder, but does not
2898 include a contract or subcontract for the repair, alteration,
2899 improvement, or construction of real property, except to the
2900 extent that purchases under such a contract would otherwise be
2901 exempt from the tax imposed by this chapter.
2902 (d) The exemption provided in this subsection applies as
2903 follows:
2904 1. Beginning July 1, 2000, the tax imposed by this chapter
2905 shall be applicable to 60 percent of the sales price or cost
2906 price of such overhead materials.
2907 2. Beginning July 1, 2001, the tax imposed by this chapter
2908 shall be applicable to 40 percent of the sales price or cost
2909 price of such overhead materials.
2910 3. Beginning July 1, 2002, the tax imposed by this chapter
2911 shall be applicable to 20 percent of the sales price or cost
2912 price of such overhead materials.
2913 4. Beginning July 1, 2003, the entire sales price or cost
2914 price of such overhead materials is exempt from the tax imposed
2915 by this chapter.
2916
2917 The exemption provided in this subsection does not apply to any
2918 part of the cost of overhead materials allocated to a contract
2919 that is not a qualifying contract.
2920 (e) Possession by a seller of a resale certificate or
2921 direct-pay permit relieves the seller from the responsibility of
2922 collecting the tax, and the department shall look solely to the
2923 contractor for recovery of such tax if it determines that the
2924 contractor was not entitled to the exemption. The contractor
2925 shall self-accrue and remit any applicable sales or use tax due
2926 with respect to overhead materials and with respect to costs
2927 allocable to contracts that are not qualifying contracts. The
2928 department may amend its rules to reflect the use of resale
2929 certificates and direct-pay permits with respect to the
2930 exemption provided for in this subsection.
2931 (f) This subsection is not an expression of legislative
2932 intent as to the applicability of any tax to any sale or use of
2933 overhead materials prior to July 1, 1999. In addition, this
2934 subsection does not imply that transactions or costs that are
2935 not described in this subsection are taxable.
2936 (18) MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2937 RESEARCH AND DEVELOPMENT.—
2938 (a) Machinery and equipment used predominantly for research
2939 and development as defined in this subsection are exempt from
2940 the tax imposed by this chapter.
2941 (b) For purposes of this subsection:
2942 1. “Machinery and equipment” includes, but is not limited
2943 to, molds, dies, machine tooling, other appurtenances or
2944 accessories to machinery and equipment, testing and measuring
2945 equipment, test beds, computers, and software, whether purchased
2946 or self-fabricated, and, if self-fabricated, includes materials
2947 and labor for design, fabrication, and assembly.
2948 2. “Predominantly” means at least 50 percent of the time.
2949 3. “Research and development” means research that has one
2950 of the following as its ultimate goal:
2951 a. Basic research in a scientific field of endeavor;
2952 b. Advancing knowledge or technology in a scientific or
2953 technical field of endeavor;
2954 c. The development of a new product, whether or not the new
2955 product is offered for sale;
2956 d. The improvement of an existing product, whether or not
2957 the improved product is offered for sale;
2958 e. The development of new uses of an existing product,
2959 whether or not a new use is offered as a rationale to purchase
2960 the product; or
2961 f. The design and development of prototypes, whether or not
2962 a resulting product is offered for sale.
2963
2964 The term “research and development” does not include ordinary
2965 testing or inspection of materials or products used for quality
2966 control, market research, efficiency surveys, consumer surveys,
2967 advertising and promotions, management studies, or research in
2968 connection with literary, historical, social science,
2969 psychological, or other similar nontechnical activities.
2970 (c) The department may adopt rules pursuant to ss.
2971 120.536(1) and 120.54 that provide for administering and
2972 implementing this exemption.
2973 (d) A person who claims the exemption provided in this
2974 subsection shall furnish the vendor of the machinery or
2975 equipment, including the vendor of materials and labor used in
2976 self-fabrication of the machinery or equipment, an affidavit
2977 stating that the item or items for which an exemption is claimed
2978 are machinery and equipment that will be used predominantly for
2979 research and development as required by this subsection. A
2980 purchaser who claims the exemption by refund shall include the
2981 affidavit with the refund application. The affidavit must
2982 contain the purchaser’s name, address, sales and use tax
2983 registration number, and, if applicable, federal employer’s
2984 identification number. Any person fraudulently furnishing an
2985 affidavit to the vendor for the purpose of evading payment of
2986 any tax imposed under this chapter shall be subject to the
2987 penalty set forth in s. 212.085 and as otherwise provided by
2988 law.
2989 (e) In lieu of furnishing an affidavit, a purchaser
2990 claiming the exemption provided in this subsection who has a
2991 direct-pay permit may furnish the vendor with a copy of the
2992 direct-pay permit and shall maintain all documentation necessary
2993 to prove the exempt status of the purchases and fabrication
2994 activity.
2995 (f) Purchasers shall maintain all documentation necessary
2996 to prove the exempt status of purchases and fabrication activity
2997 and make such documentation available for inspection pursuant to
2998 the requirements of s. 212.13(2).
2999 Section 4. (1) Effective July 1, 2015, ss. 212.051,
3000 212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3001 212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3002 (2) Unless modified or reenacted as provided in s. 11.9035,
3003 Florida Statutes, effective July 1, 2015, any exemption,
3004 deduction, or credit from the state sales and use tax or any
3005 exclusion of sales and services from such tax granted by the
3006 following is repealed:
3007 (a) Section 212.02, Florida Statutes, except rent on low
3008 income housing under s. 212.02(2), Florida Statutes.
3009 (b) Section 212.03, Florida Statutes, except rent charges
3010 paid by long-term residents under s. 212.03(4), Florida
3011 Statutes; rent charges paid by full-time students, by active
3012 military personnel, and by permanent residents under s.
3013 212.03(7)(a); Florida Statutes; rent charges in mobile home
3014 parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3015 for living accommodations in migrant labor camps under s.
3016 212.03(7)(d), Florida Statutes.
3017 (c) Section 212.031, Florida Statutes, except utility
3018 charges under s. 212.031(7), Florida Statutes.
3019 (d) Sections 212.04, 212.05, and 212.0506, Florida
3020 Statutes.
3021 (e) Sections 212.06 and 212.081, Florida Statutes, except
3022 any sale exempted by federal law or the United States
3023 Constitution.
3024 (f) Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3025 Florida Statutes.
3026 Section 5. Except as otherwise expressly provided in this
3027 act, this act shall take effect July 1, 2012.
