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.

feedback