Florida Senate - 2010 SB 216
By Senator Lynn
1 A bill to be entitled
2 An act relating to a review of exemptions and
3 exclusions from the tax on sales, use, and other
4 transactions; amending s. 11.903, F.S.; expanding the
5 purposes of the Joint Legislative Sunset Committee to
6 conform to changes made by the act; creating s.
7 11.9035, F.S.; providing a short title; providing
8 additional responsibilities of the Joint Legislative
9 Sunset Committee for the purpose of reviewing
10 exemptions from the general state sales and use tax
11 and exclusions of sales of services from such
12 taxation; providing for meetings and governance by
13 joint rules; providing definitions; specifying powers
14 and duties; providing for reports; requiring
15 continuing periodic review of sales tax exemptions and
16 exclusions; providing for recommendations to the
17 Legislature; amending s. 212.08, F.S.; providing for
18 future elimination of all sales, rental, use,
19 consumption, distribution, and storage tax exemptions
20 except those for general groceries, medical, guide
21 dogs for the blind, and household fuels; repealing s.
22 212.051, F.S., relating to an exemption for equipment,
23 machinery, and other materials for pollution control;
24 repealing s. 212.052, F.S., relating to an exemption
25 for research or development costs; repealing s.
26 212.0598, F.S., relating to a partial exemption for
27 air carriers’ maintenance bases; repealing s.
28 212.0602, F.S., relating to a limited exemption for
29 education; repealing s. 212.0801, F.S., relating to an
30 exemption for qualified aircraft; repealing s.
31 212.0821, F.S., relating to legislative intent that
32 political subdivisions and public libraries use sales
33 tax exemption certificates for certain purchases;
34 repealing s. 212.09, F.S., relating to trade-ins
35 deducted; repealing s. 212.096, F.S., relating to
36 credit for job creation in enterprise zones; repealing
37 s. 212.097, F.S., relating to the Urban High Crime
38 Area Job Tax Credit Program; repealing s. 212.098,
39 F.S., relating to the Rural Job Tax Credit Program;
40 providing for future repeal of certain provisions of
41 ss. 212.02, 212.03, 212.031, 212.04, 212.05, 212.0506,
42 212.06, 212.0601, 212.07, 212.081, 212.12, 212.20, and
43 376.75, F.S., relating to various sales and use tax
44 exemptions, exclusions, and credits; providing
45 exceptions; providing effective dates.
47 WHEREAS, Florida’s current budget difficulties require the
48 state to consider innovative solutions in addressing the long
49 term viability of the state’s tax structure, and
50 WHEREAS, the state’s tax structure should treat individuals
51 fairly and equitably, imposing similar tax burdens on people in
52 similar circumstances, and
53 WHEREAS, exemptions to the state’s sales tax should serve
54 an important state interest and should be uniform in the effect
55 on residents of the state, and
56 WHEREAS, the Legislature finds that a periodic sunset and
57 review of all sales tax exemptions will serve to restore
58 fairness to the state’s tax structure, NOW, THEREFORE,
60 Be It Enacted by the Legislature of the State of Florida:
62 Section 1. Subsection (2) of section 11.903, Florida
63 Statutes, is amended to read:
64 11.903 Legislative Sunset Review Committees and the Joint
65 Legislative Sunset Committee.—
66 (2) The Senate and House of Representatives shall appoint a
67 Joint Legislative Sunset Committee to:
68 (a) Oversee
for the purposes of overseeing the agency
69 sunset reviews review process required by ss. 11.901-11.920; and
70 (b) Review exemptions from the tax on sales, use, and other
71 transactions required by s. 11.9035. and of making
73 The committee shall make recommendations to the Legislature
74 based on the findings of the reviews.
75 Section 2. Section 11.9035, Florida Statutes, is created to
77 11.9035 Sales and use tax exemption and exclusion review.—
78 (1) SHORT TITLE.—This section may be cited as the “Florida
79 Sales Tax Fairness Restoration Act.”
80 (2) SALES TAX EXEMPTIONS REVIEW.—In addition to the review
81 required under ss. 11.901-11.920, the Joint Legislative Sunset
82 Committee shall conduct comprehensive, periodic reviews of all
83 exemptions from the general state sales and use tax and
84 exclusions of sales of services from such taxation as provided
85 by this section.
86 (3) PROCEDURES.—In addition to other meeting requirements
87 specified by ss. 11.901-11.920, the committee for each review
88 cycle shall have its initial meeting no later than September 1,
89 2010, and thereafter as necessary, at the call of the chair at
90 the time and place designated by the chair. A quorum shall
91 consist of a majority of the committee members from each house.
92 During the interim between regular sessions, the committee may
93 conduct its meetings through teleconferences or other similar
95 (4) RULES.—For purposes of this section, the committee
96 shall be governed by joint rules adopted by the Legislature
97 pursuant to authority to adopt rules under s. 4, Art. III of the
98 State Constitution.
99 (5) DEFINITIONS.—As used in this section, the term:
100 (a) “General state sales and use tax” means the sales and
101 use tax imposed under chapter 212.
102 (b) “Service” means a service within any of the following
103 service categories under the North American Industry
104 Classification System (NAICS):
105 1. Personal services.
106 2. Professional services.
107 3. Business services.
108 4. Financial services.
109 5. Media services.
110 6. Entertainment and sports services.
111 7. Construction services.
112 8. Institutional services.
113 9. Transportation services.
114 10. Health services.
115 (6) POWERS AND DUTIES.—The committee shall conduct a
116 comprehensive review of all current and future exemptions from
117 the general state sales and use tax and the exclusion of sales
118 of services from such taxation. The committee shall establish
119 criteria by which each exemption or exclusion shall be
120 evaluated. In developing the evaluation criteria, the committee
121 shall consider the following principles of taxation:
122 (a) Equity.—The Florida tax system should treat individuals
123 equitably. It should impose similar tax burdens on people in
124 similar circumstances and should minimize regressivity.
125 (b) Simplicity, transparency, and compliance.—The Florida
126 tax system should facilitate taxpayer compliance. It should be
127 simple and easy to understand and should provide visibility and
128 awareness of the taxes being paid.
129 (c) Neutrality.—The Florida tax system should affect
130 taxpayers uniformly and consistently. The primary purpose of any
131 tax should be to raise revenue for appropriate governmental
132 functions, rather than to influence business and personal
134 (d) Stability.—The Florida tax system should produce
135 revenues in a stable and reliable manner that is sufficient to
136 fund appropriate governmental functions and expenditures.
137 (e) Integration.—The Florida tax system should balance the
138 need for integration of federal, state, and local taxation.
139 (f) Public purpose.—Any sales and use tax exemption or
140 exclusion under the Florida tax system should be based upon a
141 determination that the exemption or exclusion promotes an
142 important state interest and should benefit citizens as equally
143 as possible.
144 (7) FINDINGS AND RECOMMENDATIONS.—In conducting its review
145 of each exemption from the general state sales and use tax or
146 the exclusion of the sale of a service from such taxation, the
147 committee shall make findings of fact and recommend whether the
148 exemption should be retained, modified, or repealed or whether
149 the exclusion should be retained or eliminated. Each
150 recommendation must be made by majority vote of the committee
151 members from each house. If a majority vote of the committee
152 members from each house cannot be achieved, the committee must
153 recommend that the exemption or exclusion be repealed. The
154 findings of fact and recommendations of the committee shall be
155 made by reports to the President of the Senate and the Speaker
156 of the House of Representatives.
157 (8) EXEMPTIONS AND EXCLUSIONS REVIEW.—
158 (a) The committee may use its discretion in determining the
159 order in which it reviews the exemptions and exclusions. For the
160 initial review, the committee shall submit to the President of
161 the Senate and the Speaker of the House of Representatives its
162 initial report on one-third of the exemptions and exclusions by
163 November 1, 2010, its report on the second one-third of the
164 exemptions and exclusions by March 1, 2011, and its report on
165 the final one-third of the exemptions and exclusions by July 1,
166 2011, with no duplication of exemptions or exclusions from one
167 report to the next. Thereafter, the committee shall review every
168 3 years approximately one-third of the exemptions and
169 exclusions, with no duplication of exemptions or exclusions
170 reviewed from one 3-year period to the next 3-year period. The
171 committee shall submit its 3-year period review reports no later
172 than December 1 of the year prior to the next regular session
173 after the expiration of the third year of each 3-year review
174 cycle. The committee shall begin a new 9-year review cycle of
175 all exemptions from the general state sales and use tax and all
176 exclusions of sales of services from such taxation every 9 years
177 after the termination of the previous review cycle.
178 (b) Notwithstanding the provisions of this section,
179 exemptions and exclusions for necessities, including, but not
180 limited to, exemptions for general groceries as described in s.
181 212.08(1), medical products or supplies as described in s.
182 212.08(2), health services, residential housing, residential
183 electricity, and home heating fuel, and sales of property or
184 services that the state is prohibited from taxing under the
185 State Constitution or laws of the United States are not subject
186 to review by the committee or repeal in legislation proposed by
187 the committee.
188 (9) LEGISLATION.—At the regular session after submission of
189 each annual report to the Speaker of the House of
190 Representatives and the President of the Senate, the committee
191 shall introduce in both houses of the Legislature bills
192 presenting for reenactment, modification, or repeal those
193 exemptions from the general state sales and use tax or any
194 imposition of such taxation on sales of services which were
195 recommended by the committee in the report submitted immediately
196 prior to the session in which introduced. Each bill introduced
197 must be restricted to a single exemption or the imposition of
198 the tax on a single service and must be submitted to a vote of
199 the members of each house of the Legislature no later than the
200 8th week of the session in which it is introduced, unless the
201 substance of the bill has already been voted on by the members
202 of that house of the Legislature in another bill during that
203 session, regardless of the outcome of that vote, or the bill has
204 already been submitted to the members of the other house and has
205 been defeated.
206 (10) REPEAL.—Any exemption from the state general sales and
207 use tax or exemption from imposition of such tax on sales of
208 services which is not prohibited from review by the committee
209 under the requirements of paragraph (8)(b) and is not modified
210 or reenacted by the end of the regular session after any 9-year
211 review period is repealed on July 1 after the end of the regular
212 session immediately after the 9-year review period.
213 (11) CONSTRUCTION.—This section does not preclude a
214 legislator from filing for consideration during any legislative
215 session a bill proposing to modify, repeal, or enact any
216 exemption from the general state sales and use tax or the
217 imposition of such taxation on the sales of any service.
218 Section 3. Effective July 1, 2012, section 212.08, Florida
219 Statutes, is amended to read:
220 212.08 Sales, rental, use, consumption, distribution, and
221 storage tax; specified exemptions.—The sale at retail, the
222 rental, the use, the consumption, the distribution, and the
223 storage to be used or consumed in this state of the following
224 are hereby specifically exempt from the tax imposed by this
226 (1) EXEMPTIONS; GENERAL GROCERIES.—
227 (a) Food products for human consumption are exempt from the
228 tax imposed by this chapter.
229 (b) For the purpose of this chapter, as used in this
230 subsection, the term “food products” means edible commodities,
231 whether processed, cooked, raw, canned, or in any other form,
232 which are generally regarded as food. This includes, but is not
233 limited to, all of the following:
234 1. Cereals and cereal products, baked goods, oleomargarine,
235 meat and meat products, fish and seafood products, frozen foods
236 and dinners, poultry, eggs and egg products, vegetables and
237 vegetable products, fruit and fruit products, spices, salt,
238 sugar and sugar products, milk and dairy products, and products
239 intended to be mixed with milk.
240 2. Natural fruit or vegetable juices or their concentrates
241 or reconstituted natural concentrated fruit or vegetable juices,
242 whether frozen or unfrozen, dehydrated, powdered, granulated,
243 sweetened or unsweetened, seasoned with salt or spice, or
244 unseasoned; coffee, coffee substitutes, or cocoa; and tea,
245 unless it is sold in a liquid form.
246 3. Bakery products sold by bakeries, pastry shops, or like
247 establishments that do not have eating facilities.
248 (c) The exemption provided by this subsection does not
250 1. When the food products are sold as meals for consumption
251 on or off the premises of the dealer.
252 2. When the food products are furnished, prepared, or
253 served for consumption at tables, chairs, or counters or from
254 trays, glasses, dishes, or other tableware, whether provided by
255 the dealer or by a person with whom the dealer contracts to
256 furnish, prepare, or serve food products to others.
257 3. When the food products are ordinarily sold for immediate
258 consumption on the seller’s premises or near a location at which
259 parking facilities are provided primarily for the use of patrons
260 in consuming the products purchased at the location, even though
261 such products are sold on a “take out” or “to go” order and are
262 actually packaged or wrapped and taken from the premises of the
264 4. To sandwiches sold ready for immediate consumption on or
265 off the seller’s premises.
266 5. When the food products are sold ready for immediate
267 consumption within a place, the entrance to which is subject to
268 an admission charge.
269 6. When the food products are sold as hot prepared food
271 7. To soft drinks, which include, but are not limited to,
272 any nonalcoholic beverage, any preparation or beverage commonly
273 referred to as a “soft drink,” or any noncarbonated drink made
274 from milk derivatives or tea, when sold in cans or similar
276 8. To ice cream, frozen yogurt, and similar frozen dairy or
277 nondairy products in cones, small cups, or pints, popsicles,
278 frozen fruit bars, or other novelty items, whether or not sold
280 9. To food prepared, whether on or off the premises, and
281 sold for immediate consumption. This does not apply to food
282 prepared off the premises and sold in the original sealed
283 container, or the slicing of products into smaller portions.
284 10. When the food products are sold through a vending
285 machine, pushcart, motor vehicle, or any other form of vehicle.
286 11. To candy and any similar product regarded as candy or
287 confection, based on its normal use, as indicated on the label
288 or advertising thereof.
289 12. To bakery products sold by bakeries, pastry shops, or
290 like establishments that have eating facilities, except when
291 sold for consumption off the seller’s premises.
292 13. When food products are served, prepared, or sold in or
293 by restaurants, lunch counters, cafeterias, hotels, taverns, or
294 other like places of business.
295 (d) As used in this subsection, the term:
296 1. “For consumption off the seller’s premises” means that
297 the food or drink is intended by the customer to be consumed at
298 a place away from the dealer’s premises.
299 2. “For consumption on the seller’s premises” means that
300 the food or drink sold may be immediately consumed on the
301 premises where the dealer conducts his or her business. In
302 determining whether an item of food is sold for immediate
303 consumption, there shall be considered the customary consumption
304 practices prevailing at the selling facility.
305 3. “Premises” shall be construed broadly, and means, but is
306 not limited to, the lobby, aisle, or auditorium of a theater;
307 the seating, aisle, or parking area of an arena, rink, or
308 stadium; or the parking area of a drive-in or outdoor theater.
309 The premises of a caterer with respect to catered meals or
310 beverages shall be the place where such meals or beverages are
312 4. “Hot prepared food products” means those products,
313 items, or components which have been prepared for sale in a
314 heated condition and which are sold at any temperature that is
315 higher than the air temperature of the room or place where they
316 are sold. “Hot prepared food products,” for the purposes of this
317 subsection, includes a combination of hot and cold food items or
318 components where a single price has been established for the
319 combination and the food products are sold in such combination,
320 such as a hot meal, a hot specialty dish or serving, or a hot
321 sandwich or hot pizza, including cold components or side items.
322 (e)1. Food or drinks not exempt under paragraphs (a), (b),
323 (c), and (d) shall be exempt, notwithstanding those paragraphs,
324 when purchased with food coupons or Special Supplemental Food
325 Program for Women, Infants, and Children vouchers issued under
326 authority of federal law.
327 2. This paragraph is effective only while federal law
328 prohibits a state’s participation in the federal food coupon
329 program or Special Supplemental Food Program for Women, Infants,
330 and Children if there is an official determination that state or
331 local sales taxes are collected within that state on purchases
332 of food or drinks with such coupons.
333 3. This paragraph shall not apply to any food or drinks on
334 which federal law shall permit sales taxes without penalty, such
335 as termination of the state’s participation.
336 (2) EXEMPTIONS; MEDICAL.—
337 (a) There shall be exempt from the tax imposed by this
338 chapter any medical products and supplies or medicine dispensed
339 according to an individual prescription or prescriptions written
340 by a prescriber authorized by law to prescribe medicinal drugs;
341 hypodermic needles; hypodermic syringes; chemical compounds and
342 test kits used for the diagnosis or treatment of human disease,
343 illness, or injury; and common household remedies recommended
344 and generally sold for internal or external use in the cure,
345 mitigation, treatment, or prevention of illness or disease in
346 human beings, but not including cosmetics or toilet articles,
347 notwithstanding the presence of medicinal ingredients therein,
348 according to a list prescribed and approved by the Department of
349 Health, which list shall be certified to the Department of
350 Revenue from time to time and included in the rules promulgated
351 by the Department of Revenue. There shall also be exempt from
352 the tax imposed by this chapter artificial eyes and limbs;
353 orthopedic shoes; prescription eyeglasses and items incidental
354 thereto or which become a part thereof; dentures; hearing aids;
355 crutches; prosthetic and orthopedic appliances; and funerals. In
356 addition, any items intended for one-time use which transfer
357 essential optical characteristics to contact lenses shall be
358 exempt from the tax imposed by this chapter; however, this
359 exemption shall apply only after $100,000 of the tax imposed by
360 this chapter on such items has been paid in any calendar year by
361 a taxpayer who claims the exemption in such year. Funeral
362 directors shall pay tax on all tangible personal property used
363 by them in their business.
364 (b) For the purposes of this subsection:
365 1. “Prosthetic and orthopedic appliances” means any
366 apparatus, instrument, device, or equipment used to replace or
367 substitute for any missing part of the body, to alleviate the
368 malfunction of any part of the body, or to assist any disabled
369 person in leading a normal life by facilitating such person’s
370 mobility. Such apparatus, instrument, device, or equipment shall
371 be exempted according to an individual prescription or
372 prescriptions written by a physician licensed under chapter 458,
373 chapter 459, chapter 460, chapter 461, or chapter 466, or
374 according to a list prescribed and approved by the Department of
375 Health, which list shall be certified to the Department of
376 Revenue from time to time and included in the rules promulgated
377 by the Department of Revenue.
378 2. “Cosmetics” means articles intended to be rubbed,
379 poured, sprinkled, or sprayed on, introduced into, or otherwise
380 applied to the human body for cleansing, beautifying, promoting
381 attractiveness, or altering the appearance and also means
382 articles intended for use as a compound of any such articles,
383 including, but not limited to, cold creams, suntan lotions,
384 makeup, and body lotions.
385 3. “Toilet articles” means any article advertised or held
386 out for sale for grooming purposes and those articles that are
387 customarily used for grooming purposes, regardless of the name
388 by which they may be known, including, but not limited to, soap,
389 toothpaste, hair spray, shaving products, colognes, perfumes,
390 shampoo, deodorant, and mouthwash.
391 4. “Prescription” includes any order for drugs or medicinal
392 supplies written or transmitted by any means of communication by
393 a duly licensed practitioner authorized by the laws of the state
394 to prescribe such drugs or medicinal supplies and intended to be
395 dispensed by a pharmacist. The term also includes an orally
396 transmitted order by the lawfully designated agent of such
397 practitioner. The term also includes an order written or
398 transmitted by a practitioner licensed to practice in a
399 jurisdiction other than this state, but only if the pharmacist
400 called upon to dispense such order determines, in the exercise
401 of his or her professional judgment, that the order is valid and
402 necessary for the treatment of a chronic or recurrent illness.
403 The term also includes a pharmacist’s order for a product
404 selected from the formulary created pursuant to s. 465.186. A
405 prescription may be retained in written form, or the pharmacist
406 may cause it to be recorded in a data processing system,
407 provided that such order can be produced in printed form upon
408 lawful request.
409 (c) Chlorine shall not be exempt from the tax imposed by
410 this chapter when used for the treatment of water in swimming
412 (d) Lithotripters are exempt.
413 (e) Human organs are exempt.
414 (f) Sales of drugs to or by physicians, dentists,
415 veterinarians, and hospitals in connection with medical
416 treatment are exempt.
417 (g) Medical products and supplies used in the cure,
418 mitigation, alleviation, prevention, or treatment of injury,
419 disease, or incapacity which are temporarily or permanently
420 incorporated into a patient or client by a practitioner of the
421 healing arts licensed in the state are exempt.
422 (h) The purchase by a veterinarian of commonly recognized
423 substances possessing curative or remedial properties which are
424 ordered and dispensed as treatment for a diagnosed health
425 disorder by or on the prescription of a duly licensed
426 veterinarian, and which are applied to or consumed by animals
427 for alleviation of pain or the cure or prevention of sickness,
428 disease, or suffering are exempt. Also exempt are the purchase
429 by a veterinarian of antiseptics, absorbent cotton, gauze for
430 bandages, lotions, vitamins, and worm remedies.
431 (i) X-ray opaques, also known as opaque drugs and
432 radiopaque, such as the various opaque dyes and barium sulphate,
433 when used in connection with medical X rays for treatment of
434 bodies of humans and animals, are exempt.
435 (j) Parts, special attachments, special lettering, and
436 other like items that are added to or attached to tangible
437 personal property so that a handicapped person can use them are
438 exempt when such items are purchased by a person pursuant to an
439 individual prescription.
440 (k) This subsection shall be strictly construed and
442 (3) EXEMPTIONS; CERTAIN FARM EQUIPMENT.—There shall be no
443 tax on the sale, rental, lease, use, consumption, or storage for
444 use in this state of power farm equipment used exclusively on a
445 farm or in a forest in the agricultural production of crops or
446 products as produced by those agricultural industries included
447 in s. 570.02 (1), or for fire prevention and suppression work
448 with respect to such crops or products. Harvesting may not be
449 construed to include processing activities. This exemption is
450 not forfeited by moving farm equipment between farms or forests.
451 However, this exemption shall not be allowed unless the
452 purchaser, renter, or lessee signs a certificate stating that
453 the farm equipment is to be used exclusively on a farm or in a
454 forest for agricultural production or for fire prevention and
455 suppression, as required by this subsection. Possession by a
456 seller, lessor, or other dealer of a written certification by
457 the purchaser, renter, or lessee certifying the purchaser’s,
458 renter’s, or lessee’s entitlement to an exemption permitted by
459 this subsection relieves the seller from the responsibility of
460 collecting the tax on the nontaxable amounts, and the department
461 shall look solely to the purchaser for recovery of such tax if
462 it determines that the purchaser was not entitled to the
464 (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.—
465 (a) Also exempt are:
466 1. Water delivered to the purchaser through pipes or
467 conduits or delivered for irrigation purposes. The sale of
468 drinking water in bottles, cans, or other containers, including
469 water that contains minerals or carbonation in its natural state
470 or water to which minerals have been added at a water treatment
471 facility regulated by the Department of Environmental Protection
472 or the Department of Health, is exempt. This exemption does not
473 apply to the sale of drinking water in bottles, cans, or other
474 containers if carbonation or flavorings, except those added at a
475 water treatment facility, have been added. Water that has been
476 enhanced by the addition of minerals and that does not contain
477 any added carbonation or flavorings is also exempt.
478 2. All fuels used by a public or private utility, including
479 any municipal corporation or rural electric cooperative
480 association, in the generation of electric power or energy for
481 sale. Fuel other than motor fuel and diesel fuel is taxable as
482 provided in this chapter with the exception of fuel expressly
483 exempt herein. Motor fuels and diesel fuels are taxable as
484 provided in chapter 206, with the exception of those motor fuels
485 and diesel fuels used by railroad locomotives or vessels to
486 transport persons or property in interstate or foreign commerce,
487 which are taxable under this chapter only to the extent provided
488 herein. The basis of the tax shall be the ratio of intrastate
489 mileage to interstate or foreign mileage traveled by the
490 carrier’s railroad locomotives or vessels that were used in
491 interstate or foreign commerce and that had at least some
492 Florida mileage during the previous fiscal year of the carrier,
493 such ratio to be determined at the close of the fiscal year of
494 the carrier. However, during the fiscal year in which the
495 carrier begins its initial operations in this state, the
496 carrier’s mileage apportionment factor may be determined on the
497 basis of an estimated ratio of anticipated miles in this state
498 to anticipated total miles for that year, and subsequently,
499 additional tax shall be paid on the motor fuel and diesel fuels,
500 or a refund may be applied for, on the basis of the actual ratio
501 of the carrier’s railroad locomotives’ or vessels’ miles in this
502 state to its total miles for that year. This ratio shall be
503 applied each month to the total Florida purchases made in this
504 state of motor and diesel fuels to establish that portion of the
505 total used and consumed in intrastate movement and subject to
506 tax under this chapter. The basis for imposition of any
507 discretionary surtax shall be set forth in s. 212.054 . Fuels
508 used exclusively in intrastate commerce do not qualify for the
509 proration of tax.
510 3. The transmission or wheeling of electricity.
511 (b) Alcoholic beverages and malt beverages are not exempt.
512 The terms “alcoholic beverages” and “malt beverages” as used in
513 this paragraph have the same meanings ascribed to them in ss.
514 561.01 (4) and 563.01 , respectively. It is determined by the
515 Legislature that the classification of alcoholic beverages made
516 in this paragraph for the purpose of extending the tax imposed
517 by this chapter is reasonable and just, and it is intended that
518 such tax be separate from, and in addition to, any other tax
519 imposed on alcoholic beverages.
520 (5) EXEMPTIONS; ACCOUNT OF USE.—
521 (a) Items in agricultural use and certain nets. —There are
522 exempt from the tax imposed by this chapter nets designed and
523 used exclusively by commercial fisheries; disinfectants,
524 fertilizers, insecticides, pesticides, herbicides, fungicides,
525 and weed killers used for application on crops or groves,
526 including commercial nurseries and home vegetable gardens, used
527 in dairy barns or on poultry farms for the purpose of protecting
528 poultry or livestock, or used directly on poultry or livestock;
529 portable containers or movable receptacles in which portable
530 containers are placed, used for processing farm products; field
531 and garden seeds, including flower seeds; nursery stock,
532 seedlings, cuttings, or other propagative material purchased for
533 growing stock; seeds, seedlings, cuttings, and plants used to
534 produce food for human consumption; cloth, plastic, and other
535 similar materials used for shade, mulch, or protection from
536 frost or insects on a farm; generators used on poultry farms;
537 and liquefied petroleum gas or other fuel used to heat a
538 structure in which started pullets or broilers are raised;
539 however, such exemption shall not be allowed unless the
540 purchaser or lessee signs a certificate stating that the item to
541 be exempted is for the exclusive use designated herein. Also
542 exempt are cellophane wrappers, glue for tin and glass
543 (apiarists), mailing cases for honey, shipping cases, window
544 cartons, and baling wire and twine used for baling hay, when
545 used by a farmer to contain, produce, or process an agricultural
547 (b) Machinery and equipment used to increase productive
548 output. —
549 1. Industrial machinery and equipment purchased for
550 exclusive use by a new business in spaceport activities as
551 defined by s. 212.02 or for use in new businesses which
552 manufacture, process, compound, or produce for sale items of
553 tangible personal property at fixed locations are exempt from
554 the tax imposed by this chapter upon an affirmative showing by
555 the taxpayer to the satisfaction of the department that such
556 items are used in a new business in this state. Such purchases
557 must be made prior to the date the business first begins its
558 productive operations, and delivery of the purchased item must
559 be made within 12 months of that date.
560 2. Industrial machinery and equipment purchased for
561 exclusive use by an expanding facility which is engaged in
562 spaceport activities as defined by s. 212.02 or for use in
563 expanding manufacturing facilities or plant units which
564 manufacture, process, compound, or produce for sale items of
565 tangible personal property at fixed locations in this state are
566 exempt from any amount of tax imposed by this chapter upon an
567 affirmative showing by the taxpayer to the satisfaction of the
568 department that such items are used to increase the productive
569 output of such expanded facility or business by not less than 10
571 3.a. To receive an exemption provided by subparagraph 1. or
572 subparagraph 2., a qualifying business entity shall apply to the
573 department for a temporary tax exemption permit. The application
574 shall state that a new business exemption or expanded business
575 exemption is being sought. Upon a tentative affirmative
576 determination by the department pursuant to subparagraph 1. or
577 subparagraph 2., the department shall issue such permit.
578 b. The applicant shall be required to maintain all
579 necessary books and records to support the exemption. Upon
580 completion of purchases of qualified machinery and equipment
581 pursuant to subparagraph 1. or subparagraph 2., the temporary
582 tax permit shall be delivered to the department or returned to
583 the department by certified or registered mail.
584 c. If, in a subsequent audit conducted by the department,
585 it is determined that the machinery and equipment purchased as
586 exempt under subparagraph 1. or subparagraph 2. did not meet the
587 criteria mandated by this paragraph or if commencement of
588 production did not occur, the amount of taxes exempted at the
589 time of purchase shall immediately be due and payable to the
590 department by the business entity, together with the appropriate
591 interest and penalty, computed from the date of purchase, in the
592 manner prescribed by this chapter.
593 d. In the event a qualifying business entity fails to apply
594 for a temporary exemption permit or if the tentative
595 determination by the department required to obtain a temporary
596 exemption permit is negative, a qualifying business entity shall
597 receive the exemption provided in subparagraph 1. or
598 subparagraph 2. through a refund of previously paid taxes. No
599 refund may be made for such taxes unless the criteria mandated
600 by subparagraph 1. or subparagraph 2. have been met and
601 commencement of production has occurred.
602 4. The department shall adopt rules governing applications
603 for, issuance of, and the form of temporary tax exemption
604 permits; provisions for recapture of taxes; and the manner and
605 form of refund applications and may establish guidelines as to
606 the requisites for an affirmative showing of increased
607 productive output, commencement of production, and qualification
608 for exemption.
609 5. The exemptions provided in subparagraphs 1. and 2. do
610 not apply to machinery or equipment purchased or used by
611 electric utility companies, communications companies, oil or gas
612 exploration or production operations, publishing firms that do
613 not export at least 50 percent of their finished product out of
614 the state, any firm subject to regulation by the Division of
615 Hotels and Restaurants of the Department of Business and
616 Professional Regulation, or any firm which does not manufacture,
617 process, compound, or produce for sale items of tangible
618 personal property or which does not use such machinery and
619 equipment in spaceport activities as required by this paragraph.
620 The exemptions provided in subparagraphs 1. and 2. shall apply
621 to machinery and equipment purchased for use in phosphate or
622 other solid minerals severance, mining, or processing
624 6. For the purposes of the exemptions provided in
625 subparagraphs 1. and 2., these terms have the following
627 a. “Industrial machinery and equipment” means tangible
628 personal property or other property that has a depreciable life
629 of 3 years or more and that is used as an integral part in the
630 manufacturing, processing, compounding, or production of
631 tangible personal property for sale or is exclusively used in
632 spaceport activities. A building and its structural components
633 are not industrial machinery and equipment unless the building
634 or structural component is so closely related to the industrial
635 machinery and equipment that it houses or supports that the
636 building or structural component can be expected to be replaced
637 when the machinery and equipment are replaced. Heating and air
638 conditioning systems are not industrial machinery and equipment
639 unless the sole justification for their installation is to meet
640 the requirements of the production process, even though the
641 system may provide incidental comfort to employees or serve, to
642 an insubstantial degree, nonproduction activities. The term
643 includes parts and accessories only to the extent that the
644 exemption thereof is consistent with the provisions of this
646 b. “Productive output” means the number of units actually
647 produced by a single plant or operation in a single continuous
648 12-month period, irrespective of sales. Increases in productive
649 output shall be measured by the output for 12 continuous months
650 immediately following the completion of installation of such
651 machinery or equipment over the output for the 12 continuous
652 months immediately preceding such installation. However, if a
653 different 12-month continuous period of time would more
654 accurately reflect the increase in productive output of
655 machinery and equipment purchased to facilitate an expansion,
656 the increase in productive output may be measured during that
657 12-month continuous period of time if such time period is
658 mutually agreed upon by the Department of Revenue and the
659 expanding business prior to the commencement of production;
660 provided, however, in no case may such time period begin later
661 than 2 years following the completion of installation of the new
662 machinery and equipment. The units used to measure productive
663 output shall be physically comparable between the two periods,
664 irrespective of sales.
665 (c) Machinery and equipment used in production of
666 electrical or steam energy. —
667 1. The purchase of machinery and equipment for use at a
668 fixed location which machinery and equipment are necessary in
669 the production of electrical or steam energy resulting from the
670 burning of boiler fuels other than residual oil is exempt from
671 the tax imposed by this chapter. Such electrical or steam energy
672 must be primarily for use in manufacturing, processing,
673 compounding, or producing for sale items of tangible personal
674 property in this state. Use of a de minimis amount of residual
675 fuel to facilitate the burning of nonresidual fuel shall not
676 reduce the exemption otherwise available under this paragraph.
677 2. In facilities where machinery and equipment are
678 necessary to burn both residual and nonresidual fuels, the
679 exemption shall be prorated. Such proration shall be based upon
680 the production of electrical or steam energy from nonresidual
681 fuels as a percentage of electrical or steam energy from all
682 fuels. If it is determined that 15 percent or less of all
683 electrical or steam energy generated was produced by burning
684 residual fuel, the full exemption shall apply. Purchasers
685 claiming a partial exemption shall obtain such exemption by
686 refund of taxes paid, or as otherwise provided in the
687 department’s rules.
688 3. The department may adopt rules that provide for
689 implementation of this exemption. Purchasers of machinery and
690 equipment qualifying for the exemption provided in this
691 paragraph shall furnish the vendor with an affidavit stating
692 that the item or items to be exempted are for the use designated
693 herein. Any person furnishing a false affidavit to the vendor
694 for the purpose of evading payment of any tax imposed under this
695 chapter shall be subject to the penalty set forth in s. 212.085
696 and as otherwise provided by law. Purchasers with self-accrual
697 authority shall maintain all documentation necessary to prove
698 the exempt status of purchases.
699 (d) Machinery and equipment used under federal procurement
700 contract. —
701 1. Industrial machinery and equipment purchased by an
702 expanding business which manufactures tangible personal property
703 pursuant to federal procurement regulations at fixed locations
704 in this state are exempt from the tax imposed in this chapter
705 upon an affirmative showing by the taxpayer to the satisfaction
706 of the department that such items are used to increase the
707 implicit productive output of the expanded business by not less
708 than 10 percent. The percentage of increase is measured as
709 deflated implicit productive output for the calendar year during
710 which the installation of the machinery or equipment is
711 completed or during which commencement of production utilizing
712 such items is begun divided by the implicit productive output
713 for the preceding calendar year. In no case may the commencement
714 of production begin later than 2 years following completion of
715 installation of the machinery or equipment.
716 2. The amount of the exemption allowed shall equal the
717 taxes otherwise imposed by this chapter on qualifying industrial
718 machinery or equipment reduced by the percentage of gross
719 receipts from cost-reimbursement type contracts attributable to
720 the plant or operation to total gross receipts so attributable,
721 accrued for the year of completion or commencement.
722 3. The exemption provided by this paragraph shall inure to
723 the taxpayer only through refund of previously paid taxes. Such
724 refund shall be made within 30 days of formal approval by the
725 department of the taxpayer’s application, which application may
726 be made on an annual basis following installation of the
727 machinery or equipment.
728 4. For the purposes of this paragraph, the term:
729 a. “Cost-reimbursement type contracts” has the same meaning
730 as in 32 C.F.R. s. 3-405.
731 b. “Deflated implicit productive output” means the product
732 of implicit productive output times the quotient of the national
733 defense implicit price deflator for the preceding calendar year
734 divided by the deflator for the year of completion or
736 c. “Eligible costs” means the total direct and indirect
737 costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
738 general and administrative costs, selling expenses, and profit,
739 defined by the uniform cost-accounting standards adopted by the
740 Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
742 d. “Implicit productive output” means the annual eligible
743 costs attributable to all contracts or subcontracts subject to
744 federal procurement regulations of the single plant or operation
745 at which the machinery or equipment is used.
746 e. “Industrial machinery and equipment” means tangible
747 personal property or other property that has a depreciable life
748 of 3 years or more, that qualifies as an eligible cost under
749 federal procurement regulations, and that is used as an integral
750 part of the process of production of tangible personal property.
751 A building and its structural components are not industrial
752 machinery and equipment unless the building or structural
753 component is so closely related to the industrial machinery and
754 equipment that it houses or supports that the building or
755 structural component can be expected to be replaced when the
756 machinery and equipment are replaced. Heating and air
757 conditioning systems are not industrial machinery and equipment
758 unless the sole justification for their installation is to meet
759 the requirements of the production process, even though the
760 system may provide incidental comfort to employees or serve, to
761 an insubstantial degree, nonproduction activities. The term
762 includes parts and accessories only to the extent that the
763 exemption of such parts and accessories is consistent with the
764 provisions of this paragraph.
765 f. “National defense implicit price deflator” means the
766 national defense implicit price deflator for the gross national
767 product as determined by the Bureau of Economic Analysis of the
768 United States Department of Commerce.
769 5. The exclusions provided in subparagraph (b)5. apply to
770 this exemption. This exemption applies only to machinery or
771 equipment purchased pursuant to production contracts with the
772 United States Department of Defense and Armed Forces, the
773 National Aeronautics and Space Administration, and other federal
774 agencies for which the contracts are classified for national
775 security reasons. In no event shall the provisions of this
776 paragraph apply to any expanding business the increase in
777 productive output of which could be measured under the
778 provisions of sub-subparagraph (b)6.b. as physically comparable
779 between the two periods.
780 (e) Gas or electricity used for certain agricultural
781 purposes. —
782 1. Butane gas, propane gas, natural gas, and all other
783 forms of liquefied petroleum gases are exempt from the tax
784 imposed by this chapter if used in any tractor, vehicle, or
785 other farm equipment which is used exclusively on a farm or for
786 processing farm products on the farm and no part of which gas is
787 used in any vehicle or equipment driven or operated on the
788 public highways of this state. This restriction does not apply
789 to the movement of farm vehicles or farm equipment between
790 farms. The transporting of bees by water and the operating of
791 equipment used in the apiary of a beekeeper is also deemed an
792 exempt use.
793 2. Electricity used directly or indirectly for production
794 or processing of agricultural products on the farm is exempt
795 from the tax imposed by this chapter. This exemption applies
796 only if the electricity used for the exempt purposes is
797 separately metered. If the electricity is not separately
798 metered, it is conclusively presumed that some portion of the
799 electricity is used for a nonexempt purpose, and all of the
800 electricity used for such purposes is taxable.
801 (f) Motion picture or video equipment used in motion
802 picture or television production activities and sound recording
803 equipment used in the production of master tapes and master
804 records. —
805 1. Motion picture or video equipment and sound recording
806 equipment purchased or leased for use in this state in
807 production activities is exempt from the tax imposed by this
808 chapter. The exemption provided by this paragraph shall inure to
809 the taxpayer upon presentation of the certificate of exemption
810 issued to the taxpayer under the provisions of s. 288.1258 .
811 2. For the purpose of the exemption provided in
812 subparagraph 1.:
813 a. “Motion picture or video equipment” and “sound recording
814 equipment” includes only tangible personal property or other
815 property that has a depreciable life of 3 years or more and that
816 is used by the lessee or purchaser exclusively as an integral
817 part of production activities; however, motion picture or video
818 equipment and sound recording equipment does not include
819 supplies, tape, records, film, or video tape used in productions
820 or other similar items; vehicles or vessels; or general office
821 equipment not specifically suited to production activities. In
822 addition, the term does not include equipment purchased or
823 leased by television or radio broadcasting or cable companies
824 licensed by the Federal Communications Commission. Furthermore,
825 a building and its structural components are not motion picture
826 or video equipment and sound recording equipment unless the
827 building or structural component is so closely related to the
828 motion picture or video equipment and sound recording equipment
829 that it houses or supports that the building or structural
830 component can be expected to be replaced when the motion picture
831 or video equipment and sound recording equipment are replaced.
832 Heating and air-conditioning systems are not motion picture or
833 video equipment and sound recording equipment unless the sole
834 justification for their installation is to meet the requirements
835 of the production activities, even though the system may provide
836 incidental comfort to employees or serve, to an insubstantial
837 degree, nonproduction activities.
838 b. “Production activities” means activities directed toward
839 the preparation of a:
840 (I) Master tape or master record embodying sound; or
841 (II) Motion picture or television production which is
842 produced for theatrical, commercial, advertising, or educational
843 purposes and utilizes live or animated actions or a combination
844 of live and animated actions. The motion picture or television
845 production shall be commercially produced for sale or for
846 showing on screens or broadcasting on television and may be on
847 film or video tape.
848 (g) Building materials used in the rehabilitation of real
849 property located in an enterprise zone. —
850 1. Building materials used in the rehabilitation of real
851 property located in an enterprise zone shall be exempt from the
852 tax imposed by this chapter upon an affirmative showing to the
853 satisfaction of the department that the items have been used for
854 the rehabilitation of real property located in an enterprise
855 zone. Except as provided in subparagraph 2., this exemption
856 inures to the owner, lessee, or lessor of the rehabilitated real
857 property located in an enterprise zone only through a refund of
858 previously paid taxes. To receive a refund pursuant to this
859 paragraph, the owner, lessee, or lessor of the rehabilitated
860 real property located in an enterprise zone must file an
861 application under oath with the governing body or enterprise
862 zone development agency having jurisdiction over the enterprise
863 zone where the business is located, as applicable, which
865 a. The name and address of the person claiming the refund.
866 b. An address and assessment roll parcel number of the
867 rehabilitated real property in an enterprise zone for which a
868 refund of previously paid taxes is being sought.
869 c. A description of the improvements made to accomplish the
870 rehabilitation of the real property.
871 d. A copy of the building permit issued for the
872 rehabilitation of the real property.
873 e. A sworn statement, under the penalty of perjury, from
874 the general contractor licensed in this state with whom the
875 applicant contracted to make the improvements necessary to
876 accomplish the rehabilitation of the real property, which
877 statement lists the building materials used in the
878 rehabilitation of the real property, the actual cost of the
879 building materials, and the amount of sales tax paid in this
880 state on the building materials. In the event that a general
881 contractor has not been used, the applicant shall provide this
882 information in a sworn statement, under the penalty of perjury.
883 Copies of the invoices which evidence the purchase of the
884 building materials used in such rehabilitation and the payment
885 of sales tax on the building materials shall be attached to the
886 sworn statement provided by the general contractor or by the
887 applicant. Unless the actual cost of building materials used in
888 the rehabilitation of real property and the payment of sales
889 taxes due thereon is documented by a general contractor or by
890 the applicant in this manner, the cost of such building
891 materials shall be an amount equal to 40 percent of the increase
892 in assessed value for ad valorem tax purposes.
893 f. The identifying number assigned pursuant to s. 290.0065
894 to the enterprise zone in which the rehabilitated real property
895 is located.
896 g. A certification by the local building code inspector
897 that the improvements necessary to accomplish the rehabilitation
898 of the real property are substantially completed.
899 h. Whether the business is a small business as defined by
900 s. 288.703 (1).
901 i. If applicable, the name and address of each permanent
902 employee of the business, including, for each employee who is a
903 resident of an enterprise zone, the identifying number assigned
904 pursuant to s. 290.0065 to the enterprise zone in which the
905 employee resides.
906 2. This exemption inures to a city, county, other
907 governmental agency, or nonprofit community-based organization
908 through a refund of previously paid taxes if the building
909 materials used in the rehabilitation of real property located in
910 an enterprise zone are paid for from the funds of a community
911 development block grant, State Housing Initiatives Partnership
912 Program, or similar grant or loan program. To receive a refund
913 pursuant to this paragraph, a city, county, other governmental
914 agency, or nonprofit community-based organization must file an
915 application which includes the same information required to be
916 provided in subparagraph 1. by an owner, lessee, or lessor of
917 rehabilitated real property. In addition, the application must
918 include a sworn statement signed by the chief executive officer
919 of the city, county, other governmental agency, or nonprofit
920 community-based organization seeking a refund which states that
921 the building materials for which a refund is sought were paid
922 for from the funds of a community development block grant, State
923 Housing Initiatives Partnership Program, or similar grant or
924 loan program.
925 3. Within 10 working days after receipt of an application,
926 the governing body or enterprise zone development agency shall
927 review the application to determine if it contains all the
928 information required pursuant to subparagraph 1. or subparagraph
929 2. and meets the criteria set out in this paragraph. The
930 governing body or agency shall certify all applications that
931 contain the information required pursuant to subparagraph 1. or
932 subparagraph 2. and meet the criteria set out in this paragraph
933 as eligible to receive a refund. If applicable, the governing
934 body or agency shall also certify if 20 percent of the employees
935 of the business are residents of an enterprise zone, excluding
936 temporary and part-time employees. The certification shall be in
937 writing, and a copy of the certification shall be transmitted to
938 the executive director of the Department of Revenue. The
939 applicant shall be responsible for forwarding a certified
940 application to the department within the time specified in
941 subparagraph 4.
942 4. An application for a refund pursuant to this paragraph
943 must be submitted to the department within 6 months after the
944 rehabilitation of the property is deemed to be substantially
945 completed by the local building code inspector or by September 1
946 after the rehabilitated property is first subject to assessment.
947 5. Not more than one exemption through a refund of
948 previously paid taxes for the rehabilitation of real property
949 shall be permitted for any single parcel of property unless
950 there is a change in ownership, a new lessor, or a new lessee of
951 the real property. No refund shall be granted pursuant to this
952 paragraph unless the amount to be refunded exceeds $500. No
953 refund granted pursuant to this paragraph shall exceed the
954 lesser of 97 percent of the Florida sales or use tax paid on the
955 cost of the building materials used in the rehabilitation of the
956 real property as determined pursuant to sub-subparagraph 1.e. or
957 $5,000, or, if no less than 20 percent of the employees of the
958 business are residents of an enterprise zone, excluding
959 temporary and part-time employees, the amount of refund granted
960 pursuant to this paragraph shall not exceed the lesser of 97
961 percent of the sales tax paid on the cost of such building
962 materials or $10,000. A refund approved pursuant to this
963 paragraph shall be made within 30 days of formal approval by the
964 department of the application for the refund. This subparagraph
965 shall apply retroactively to July 1, 2005.
966 6. The department shall adopt rules governing the manner
967 and form of refund applications and may establish guidelines as
968 to the requisites for an affirmative showing of qualification
969 for exemption under this paragraph.
970 7. The department shall deduct an amount equal to 10
971 percent of each refund granted under the provisions of this
972 paragraph from the amount transferred into the Local Government
973 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
974 for the county area in which the rehabilitated real property is
975 located and shall transfer that amount to the General Revenue
977 8. For the purposes of the exemption provided in this
979 a. “Building materials” means tangible personal property
980 which 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).
983 c. “Rehabilitation of real property” means the
984 reconstruction, renovation, restoration, rehabilitation,
985 construction, or expansion of improvements to real property.
986 d. “Substantially completed” has the same meaning as
987 provided in s. 192.042 (1).
988 9. This paragraph expires on the date specified in s.
989 290.016 for the expiration of the Florida Enterprise Zone Act.
990 (h) Business property used in an enterprise zone. —
991 1. Business property purchased for use by businesses
992 located in an enterprise zone which is subsequently used in an
993 enterprise zone shall be exempt from the tax imposed by this
994 chapter. This exemption inures to the business only through a
995 refund of previously paid taxes. A refund shall be authorized
996 upon an affirmative showing by the taxpayer to the satisfaction
997 of the department that the requirements of this paragraph have
998 been met.
999 2. To receive a refund, the business must file under oath
1000 with the governing body or enterprise zone development agency
1001 having jurisdiction over the enterprise zone where the business
1002 is located, as applicable, an application which includes:
1003 a. The name and address of the business claiming the
1005 b. The identifying number assigned pursuant to s. 290.0065
1006 to the enterprise zone in which the business is located.
1007 c. A specific description of the property for which a
1008 refund is sought, including its serial number or other permanent
1009 identification number.
1010 d. The location of the property.
1011 e. The sales invoice or other proof of purchase of the
1012 property, showing the amount of sales tax paid, the date of
1013 purchase, and the name and address of the sales tax dealer from
1014 whom the property was purchased.
1015 f. Whether the business is a small business as defined by
1016 s. 288.703 (1).
1017 g. If applicable, the name and address of each permanent
1018 employee of the business, including, for each employee who is a
1019 resident of an enterprise zone, the identifying number assigned
1020 pursuant to s. 290.0065 to the enterprise zone in which the
1021 employee resides.
1022 3. Within 10 working days after receipt of an application,
1023 the governing body or enterprise zone development agency shall
1024 review the application to determine if it contains all the
1025 information required pursuant to subparagraph 2. and meets the
1026 criteria set out in this paragraph. The governing body or agency
1027 shall certify all applications that contain the information
1028 required pursuant to subparagraph 2. and meet the criteria set
1029 out in this paragraph as eligible to receive a refund. If
1030 applicable, the governing body or agency shall also certify if
1031 20 percent of the employees of the business are residents of an
1032 enterprise zone, excluding temporary and part-time employees.
1033 The certification shall be in writing, and a copy of the
1034 certification shall be transmitted to the executive director of
1035 the Department of Revenue. The business shall be responsible for
1036 forwarding a certified application to the department within the
1037 time specified in subparagraph 4.
1038 4. An application for a refund pursuant to this paragraph
1039 must be submitted to the department within 6 months after the
1040 tax is due on the business property that is purchased.
1041 5. The amount refunded on purchases of business property
1042 under this paragraph shall be the lesser of 97 percent of the
1043 sales tax paid on such business property or $5,000, or, if no
1044 less than 20 percent of the employees of the business are
1045 residents of an enterprise zone, excluding temporary and part
1046 time employees, the amount refunded on purchases of business
1047 property under this paragraph shall be the lesser of 97 percent
1048 of the sales tax paid on such business property or $10,000. A
1049 refund approved pursuant to this paragraph shall be made within
1050 30 days of formal approval by the department of the application
1051 for the refund. No refund shall be granted under this paragraph
1052 unless the amount to be refunded exceeds $100 in sales tax paid
1053 on purchases made within a 60-day time period.
1054 6. The department shall adopt rules governing the manner
1055 and form of refund applications and may establish guidelines as
1056 to the requisites for an affirmative showing of qualification
1057 for exemption under this paragraph.
1058 7. If the department determines that the business property
1059 is used outside an enterprise zone within 3 years from the date
1060 of purchase, the amount of taxes refunded to the business
1061 purchasing such business property shall immediately be due and
1062 payable to the department by the business, together with the
1063 appropriate interest and penalty, computed from the date of
1064 purchase, in the manner provided by this chapter.
1065 Notwithstanding this subparagraph, business property used
1066 exclusively in:
1067 a. Licensed commercial fishing vessels,
1068 b. Fishing guide boats, or
1069 c. Ecotourism guide boats
1071 that leave and return to a fixed location within an area
1072 designated under s. 379.2353 are eligible for the exemption
1073 provided under this paragraph if all requirements of this
1074 paragraph are met. Such vessels and boats must be owned by a
1075 business that is eligible to receive the exemption provided
1076 under this paragraph. This exemption does not apply to the
1077 purchase of a vessel or boat.
1078 8. The department shall deduct an amount equal to 10
1079 percent of each refund granted under the provisions of this
1080 paragraph from the amount transferred into the Local Government
1081 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
1082 for the county area in which the business property is located
1083 and shall transfer that amount to the General Revenue Fund.
1084 9. For the purposes of this exemption, “business property”
1085 means new or used property defined as “recovery property” in s.
1086 168(c) of the Internal Revenue Code of 1954, as amended, except:
1087 a. Property classified as 3-year property under s.
1088 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1089 b. Industrial machinery and equipment as defined in sub
1090 subparagraph (b)6.a. and eligible for exemption under paragraph
1092 c. Building materials as defined in sub-subparagraph
1093 (g)8.a.; and
1094 d. Business property having a sales price of under $5,000
1095 per unit.
1096 10. This paragraph expires on the date specified in s.
1097 290.016 for the expiration of the Florida Enterprise Zone Act.
1098 (i) Aircraft modification services. —There shall be exempt
1099 from the tax imposed by this chapter all charges for aircraft
1100 modification services, including parts and equipment furnished
1101 or installed in connection therewith, performed under authority
1102 of a supplemental type certificate issued by the Federal
1103 Aviation Administration.
1104 (j) Machinery and equipment used in semiconductor, defense,
1105 or space technology production. —
1106 1.a. Industrial machinery and equipment used in
1107 semiconductor technology facilities certified under subparagraph
1108 5. to manufacture, process, compound, or produce semiconductor
1109 technology products for sale or for use by these facilities are
1110 exempt from the tax imposed by this chapter. For purposes of
1111 this paragraph, industrial machinery and equipment includes
1112 molds, dies, machine tooling, other appurtenances or accessories
1113 to machinery and equipment, testing equipment, test beds,
1114 computers, and software, whether purchased or self-fabricated,
1115 and, if self-fabricated, includes materials and labor for
1116 design, fabrication, and assembly.
1117 b. Industrial machinery and equipment used in defense or
1118 space technology facilities certified under subparagraph 5. to
1119 design, manufacture, assemble, process, compound, or produce
1120 defense technology products or space technology products for
1121 sale or for use by these facilities are exempt from the tax
1122 imposed by this chapter.
1123 2. Building materials purchased for use in manufacturing or
1124 expanding clean rooms in semiconductor-manufacturing facilities
1125 are exempt from the tax imposed by this chapter.
1126 3. In addition to meeting the criteria mandated by
1127 subparagraph 1. or subparagraph 2., a business must be certified
1128 by the Office of Tourism, Trade, and Economic Development as
1129 authorized in this paragraph in order to qualify for exemption
1130 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 exemption
1134 pursuant to this paragraph, relieves the seller of the
1135 responsibility of collecting the tax on the sale of such items,
1136 and the department shall look solely to the purchaser for
1137 recovery of tax if it determines that the purchaser was not
1138 entitled to the exemption.
1139 5.a. To be eligible to receive the exemption provided by
1140 subparagraph 1. or subparagraph 2., a qualifying business entity
1141 shall apply initially to Enterprise Florida, Inc. The original
1142 certification shall be valid for a period of 2 years. In lieu of
1143 submitting a new application, the original certification may be
1144 renewed biennially by submitting to the Office of Tourism,
1145 Trade, and Economic Development a statement, certified under
1146 oath, that there has been no material change in the conditions
1147 or circumstances entitling the business entity to the original
1148 certification. The initial application and the certification
1149 renewal statement shall be developed by the Office of Tourism,
1150 Trade, and Economic Development in consultation with Enterprise
1151 Florida, Inc.
1152 b. Enterprise Florida, Inc., shall review each submitted
1153 initial application and information and determine whether or not
1154 the application is complete within 5 working days. Once an
1155 application is complete, Enterprise Florida, Inc., shall, within
1156 10 working days, evaluate the application and recommend approval
1157 or disapproval of the application to the Office of Tourism,
1158 Trade, and Economic Development.
1159 c. Upon receipt of the initial application and
1160 recommendation from Enterprise Florida, Inc., or upon receipt of
1161 a certification renewal statement, the Office of Tourism, Trade,
1162 and Economic Development shall certify within 5 working days
1163 those applicants who are found to meet the requirements of this
1164 section and notify the applicant, Enterprise Florida, Inc., and
1165 the department of the original certification or certification
1166 renewal. If the Office of Tourism, Trade, and Economic
1167 Development finds that the applicant does not meet the
1168 requirements of this section, it shall notify the applicant and
1169 Enterprise Florida, Inc., within 10 working days that the
1170 application for certification has been denied and the reasons
1171 for denial. The Office of Tourism, Trade, and Economic
1172 Development has final approval authority for certification under
1173 this section.
1174 d. The initial application and certification renewal
1175 statement must indicate, for program evaluation purposes only,
1176 the average number of full-time equivalent employees at the
1177 facility over the preceding calendar year, the average wage and
1178 benefits paid to those employees over the preceding calendar
1179 year, the total investment made in real and tangible personal
1180 property over the preceding calendar year, and the total value
1181 of tax-exempt purchases and taxes exempted during the previous
1182 year. The department shall assist the Office of Tourism, Trade,
1183 and Economic Development in evaluating and verifying information
1184 provided in the application for exemption.
1185 e. The Office of Tourism, Trade, and Economic Development
1186 may use the information reported on the initial application and
1187 certification renewal statement for evaluation purposes only and
1188 shall prepare an annual report on the exemption program and its
1189 cost and impact. The annual report for the preceding fiscal year
1190 shall be submitted to the Governor, the President of the Senate,
1191 and the Speaker of the House of Representatives by September 30
1192 of each fiscal year.
1193 6. A business certified to receive this exemption may elect
1194 to designate one or more state universities or community
1195 colleges as recipients of up to 100 percent of the amount of the
1196 exemption for which they may qualify. To receive these funds,
1197 the institution must agree to match the funds so earned with
1198 equivalent cash, programs, services, or other in-kind support on
1199 a one-to-one basis in the pursuit of research and development
1200 projects as requested by the certified business. The rights to
1201 any patents, royalties, or real or intellectual property must be
1202 vested in the business unless otherwise agreed to by the
1203 business and the university or community college.
1204 7. As used in this paragraph, the term:
1205 a. “Semiconductor technology products” means raw
1206 semiconductor wafers or semiconductor thin films that are
1207 transformed into semiconductor memory or logic wafers, including
1208 wafers containing mixed memory and logic circuits; related
1209 assembly and test operations; active-matrix flat panel displays;
1210 semiconductor chips; semiconductor lasers; optoelectronic
1211 elements; and related semiconductor technology products as
1212 determined by the Office of Tourism, Trade, and Economic
1214 b. “Clean rooms” means manufacturing facilities enclosed in
1215 a manner that meets the clean manufacturing requirements
1216 necessary for high-technology semiconductor-manufacturing
1218 c. “Defense technology products” means products that have a
1219 military application, including, but not limited to, weapons,
1220 weapons systems, guidance systems, surveillance systems,
1221 communications or information systems, munitions, aircraft,
1222 vessels, or boats, or components thereof, which are intended for
1223 military use and manufactured in performance of a contract with
1224 the United States Department of Defense or the military branch
1225 of a recognized foreign government or a subcontract thereunder
1226 which relates to matters of national defense.
1227 d. “Space technology products” means products that are
1228 specifically designed or manufactured for application in space
1229 activities, including, but not limited to, space launch
1230 vehicles, space flight vehicles, missiles, satellites or
1231 research payloads, avionics, and associated control systems and
1232 processing systems and components of any of the foregoing. The
1233 term does not include products that are designed or manufactured
1234 for general commercial aviation or other uses even though those
1235 products may also serve an incidental use in space applications.
1236 (k) Samples. —Paint color card samples, flooring and wall
1237 samples, fabric swatch samples, window covering samples, and
1238 similar samples, when such samples serve no useful purpose other
1239 than as a comparison of color, texture, or design; are provided
1240 by the manufacturer to a dealer or ultimate consumer for no
1241 charge; and are given away by the dealer to the ultimate
1242 consumer for no charge, are exempt.
1243 (l) Growth enhancers or performance enhancers for cattle.
1244 There is exempt from the tax imposed by this chapter the sale of
1245 performance-enhancing or growth-enhancing products for cattle.
1246 (m) Educational materials purchased by certain child care
1247 facilities. —Educational materials, such as glue, paper, paints,
1248 crayons, unique craft items, scissors, books, and educational
1249 toys, purchased by a child care facility that meets the
1250 standards delineated in s. 402.305 , is licensed under s.
1251 402.308 , holds a current Gold Seal Quality Care designation
1252 pursuant to s. 402.281 , and provides basic health insurance to
1253 all employees are exempt from the taxes imposed by this chapter.
1254 For purposes of this paragraph, the term “basic health
1255 insurance” shall be defined and promulgated in rules developed
1256 jointly by the Department of Children and Family Services, the
1257 Agency for Health Care Administration, and the Financial
1258 Services Commission.
1259 (n) Materials for construction of single-family homes in
1260 certain areas. —
1261 1. As used in this paragraph, the term:
1262 a. “Building materials” means tangible personal property
1263 that becomes a component part of a qualified home.
1264 b. “Qualified home” means a single-family home having an
1265 appraised value of no more than $160,000 which is located in an
1266 enterprise zone, empowerment zone, or Front Porch Florida
1267 Community and which is constructed and occupied by the owner
1268 thereof for residential purposes.
1269 c. “Substantially completed” has the same meaning as
1270 provided in s. 192.042 (1).
1271 2. Building materials used in the construction of a
1272 qualified home and the costs of labor associated with the
1273 construction of a qualified home are exempt from the tax imposed
1274 by this chapter upon an affirmative showing to the satisfaction
1275 of the department that the requirements of this paragraph have
1276 been met. This exemption inures to the owner through a refund of
1277 previously paid taxes. To receive this refund, the owner must
1278 file an application under oath with the department which
1280 a. The name and address of the owner.
1281 b. The address and assessment roll parcel number of the
1282 home for which a refund is sought.
1283 c. A copy of the building permit issued for the home.
1284 d. A certification by the local building code inspector
1285 that the home is substantially completed.
1286 e. A sworn statement, under penalty of perjury, from the
1287 general contractor licensed in this state with whom the owner
1288 contracted to construct the home, which statement lists the
1289 building materials used in the construction of the home and the
1290 actual cost thereof, the labor costs associated with such
1291 construction, and the amount of sales tax paid on these
1292 materials and labor costs. If a general contractor was not used,
1293 the owner shall provide this information in a sworn statement,
1294 under penalty of perjury. Copies of invoices evidencing payment
1295 of sales tax must be attached to the sworn statement.
1296 f. A sworn statement, under penalty of perjury, from the
1297 owner affirming that he or she is occupying the home for
1298 residential purposes.
1299 3. An application for a refund under this paragraph must be
1300 submitted to the department within 6 months after the date the
1301 home is deemed to be substantially completed by the local
1302 building code inspector. Within 30 working days after receipt of
1303 the application, the department shall determine if it meets the
1304 requirements of this paragraph. A refund approved pursuant to
1305 this paragraph shall be made within 30 days after formal
1306 approval of the application by the department.
1307 4. The department shall establish by rule an application
1308 form and criteria for establishing eligibility for exemption
1309 under this paragraph.
1310 5. The exemption shall apply to purchases of materials on
1311 or after July 1, 2000.
1312 (o) Building materials in redevelopment projects. —
1313 1. As used in this paragraph, the term:
1314 a. “Building materials” means tangible personal property
1315 that becomes a component part of a housing project or a mixed
1316 use project.
1317 b. “Housing project” means the conversion of an existing
1318 manufacturing or industrial building to housing units in an
1319 urban high-crime area, enterprise zone, empowerment zone, Front
1320 Porch Community, designated brownfield area, or urban infill
1321 area and in which the developer agrees to set aside at least 20
1322 percent of the housing units in the project for low-income and
1323 moderate-income persons or the construction in a designated
1324 brownfield area of affordable housing for persons described in
1325 s. 420.0004 (8), (10), (11), or (15) or in s. 159.603 (7).
1326 c. “Mixed-use project” means the conversion of an existing
1327 manufacturing or industrial building to mixed-use units that
1328 include artists’ studios, art and entertainment services, or
1329 other compatible uses. A mixed-use project must be located in an
1330 urban high-crime area, enterprise zone, empowerment zone, Front
1331 Porch Community, designated brownfield area, or urban infill
1332 area, and the developer must agree to set aside at least 20
1333 percent of the square footage of the project for low-income and
1334 moderate-income housing.
1335 d. “Substantially completed” has the same meaning as
1336 provided in s. 192.042 (1).
1337 2. Building materials used in the construction of a housing
1338 project or mixed-use project are exempt from the tax imposed by
1339 this chapter upon an affirmative showing to the satisfaction of
1340 the department that the requirements of this paragraph have been
1341 met. This exemption inures to the owner through a refund of
1342 previously paid taxes. To receive this refund, the owner must
1343 file an application under oath with the department which
1345 a. The name and address of the owner.
1346 b. The address and assessment roll parcel number of the
1347 project for which a refund is sought.
1348 c. A copy of the building permit issued for the project.
1349 d. A certification by the local building code inspector
1350 that the project is substantially completed.
1351 e. A sworn statement, under penalty of perjury, from the
1352 general contractor licensed in this state with whom the owner
1353 contracted to construct the project, which statement lists the
1354 building materials used in the construction of the project and
1355 the actual cost thereof, and the amount of sales tax paid on
1356 these materials. If a general contractor was not used, the owner
1357 shall provide this information in a sworn statement, under
1358 penalty of perjury. Copies of invoices evidencing payment of
1359 sales tax must be attached to the sworn statement.
1360 3. An application for a refund under this paragraph must be
1361 submitted to the department within 6 months after the date the
1362 project is deemed to be substantially completed by the local
1363 building code inspector. Within 30 working days after receipt of
1364 the application, the department shall determine if it meets the
1365 requirements of this paragraph. A refund approved pursuant to
1366 this paragraph shall be made within 30 days after formal
1367 approval of the application by the department.
1368 4. The department shall establish by rule an application
1369 form and criteria for establishing eligibility for exemption
1370 under this paragraph.
1371 5. The exemption shall apply to purchases of materials on
1372 or after July 1, 2000.
1373 (p) Community contribution tax credit for donations. —
1374 1. Authorization.—Persons who are registered with the
1375 department under s. 212.18 to collect or remit sales or use tax
1376 and who make donations to eligible sponsors are eligible for tax
1377 credits against their state sales and use tax liabilities as
1378 provided in this paragraph:
1379 a. The credit shall be computed as 50 percent of the
1380 person’s approved annual community contribution.
1381 b. The credit shall be granted as a refund against state
1382 sales and use taxes reported on returns and remitted in the 12
1383 months preceding the date of application to the department for
1384 the credit as required in sub-subparagraph 3.c. If the annual
1385 credit is not fully used through such refund because of
1386 insufficient tax payments during the applicable 12-month period,
1387 the unused amount may be included in an application for a refund
1388 made pursuant to sub-subparagraph 3.c. in subsequent years
1389 against the total tax payments made for such year. Carryover
1390 credits may be applied for a 3-year period without regard to any
1391 time limitation that would otherwise apply under s. 215.26 .
1392 c. A person may not receive more than $200,000 in annual
1393 tax credits for all approved community contributions made in any
1394 one year.
1395 d. All proposals for the granting of the tax credit require
1396 the prior approval of the Office of Tourism, Trade, and Economic
1398 e. The total amount of tax credits which may be granted for
1399 all programs approved under this paragraph, s. 220.183 , and s.
1400 624.5105 is $10.5 million annually for projects that provide
1401 homeownership opportunities for low-income or very-low-income
1402 households as defined in s. 420.9071 (19) and (28) and $3.5
1403 million annually for all other projects.
1404 f. A person who is eligible to receive the credit provided
1405 for in this paragraph, s. 220.183 , or s. 624.5105 may receive
1406 the credit only under the one section of the person’s choice.
1407 2. Eligibility requirements.—
1408 a. A community contribution by a person must be in the
1409 following form:
1410 (I) Cash or other liquid assets;
1411 (II) Real property;
1412 (III) Goods or inventory; or
1413 (IV) Other physical resources as identified by the Office
1414 of Tourism, Trade, and Economic Development.
1415 b. All community contributions must be reserved exclusively
1416 for use in a project. As used in this sub-subparagraph, the term
1417 “project” means any activity undertaken by an eligible sponsor
1418 which is designed to construct, improve, or substantially
1419 rehabilitate housing that is affordable to low-income or very
1420 low-income households as defined in s. 420.9071 (19) and (28);
1421 designed to provide commercial, industrial, or public resources
1422 and facilities; or designed to improve entrepreneurial and job
1423 development opportunities for low-income persons. A project may
1424 be the investment necessary to increase access to high-speed
1425 broadband capability in rural communities with enterprise zones,
1426 including projects that result in improvements to communications
1427 assets that are owned by a business. A project may include the
1428 provision of museum educational programs and materials that are
1429 directly related to any project approved between January 1,
1430 1996, and December 31, 1999, and located in an enterprise zone
1431 designated pursuant to s. 290.0065 . This paragraph does not
1432 preclude projects that propose to construct or rehabilitate
1433 housing for low-income or very-low-income households on
1434 scattered sites. With respect to housing, contributions may be
1435 used to pay the following eligible low-income and very-low
1436 income housing-related activities:
1437 (I) Project development impact and management fees for low
1438 income or very-low-income housing projects;
1439 (II) Down payment and closing costs for eligible persons,
1440 as defined in s. 420.9071 (19) and (28);
1441 (III) Administrative costs, including housing counseling
1442 and marketing fees, not to exceed 10 percent of the community
1443 contribution, directly related to low-income or very-low-income
1444 projects; and
1445 (IV) Removal of liens recorded against residential property
1446 by municipal, county, or special district local governments when
1447 satisfaction of the lien is a necessary precedent to the
1448 transfer of the property to an eligible person, as defined in s.
1449 420.9071 (19) and (28), for the purpose of promoting home
1450 ownership. Contributions for lien removal must be received from
1451 a nonrelated third party.
1452 c. The project must be undertaken by an “eligible sponsor,”
1453 which includes:
1454 (I) A community action program;
1455 (II) A nonprofit community-based development organization
1456 whose mission is the provision of housing for low-income or
1457 very-low-income households or increasing entrepreneurial and
1458 job-development opportunities for low-income persons;
1459 (III) A neighborhood housing services corporation;
1460 (IV) A local housing authority created under chapter 421;
1461 (V) A community redevelopment agency created under s.
1462 163.356 ;
1463 (VI) The Florida Industrial Development Corporation;
1464 (VII) A historic preservation district agency or
1466 (VIII) A regional workforce board;
1467 (IX) A direct-support organization as provided in s.
1468 1009.983 ;
1469 (X) An enterprise zone development agency created under s.
1470 290.0056 ;
1471 (XI) A community-based organization incorporated under
1472 chapter 617 which is recognized as educational, charitable, or
1473 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
1474 and whose bylaws and articles of incorporation include
1475 affordable housing, economic development, or community
1476 development as the primary mission of the corporation;
1477 (XII) Units of local government;
1478 (XIII) Units of state government; or
1479 (XIV) Any other agency that the Office of Tourism, Trade,
1480 and Economic Development designates by rule.
1482 In no event may a contributing person have a financial interest
1483 in the eligible sponsor.
1484 d. The project must be located in an area designated an
1485 enterprise zone or a Front Porch Florida Community pursuant to
1486 s. 20.18 (6), unless the project increases access to high-speed
1487 broadband capability for rural communities with enterprise zones
1488 but is physically located outside the designated rural zone
1489 boundaries. Any project designed to construct or rehabilitate
1490 housing for low-income or very-low-income households as defined
1491 in s. 420.9071 (19) and (28) is exempt from the area requirement
1492 of this sub-subparagraph.
1493 e.(I) If, during the first 10 business days of the state
1494 fiscal year, eligible tax credit applications for projects that
1495 provide homeownership opportunities for low-income or very-low
1496 income households as defined in s. 420.9071 (19) and (28) are
1497 received for less than the annual tax credits available for
1498 those projects, the Office of Tourism, Trade, and Economic
1499 Development shall grant tax credits for those applications and
1500 shall grant remaining tax credits on a first-come, first-served
1501 basis for any subsequent eligible applications received before
1502 the end of the state fiscal year. If, during the first 10
1503 business days of the state fiscal year, eligible tax credit
1504 applications for projects that provide homeownership
1505 opportunities for low-income or very-low-income households as
1506 defined in s. 420.9071 (19) and (28) are received for more than
1507 the annual tax credits available for those projects, the office
1508 shall grant the tax credits for those applications as follows:
1509 (A) If tax credit applications submitted for approved
1510 projects of an eligible sponsor do not exceed $200,000 in total,
1511 the credits shall be granted in full if the tax credit
1512 applications are approved.
1513 (B) If tax credit applications submitted for approved
1514 projects of an eligible sponsor exceed $200,000 in total, the
1515 amount of tax credits granted pursuant to sub-sub-sub
1516 subparagraph (A) shall be subtracted from the amount of
1517 available tax credits, and the remaining credits shall be
1518 granted to each approved tax credit application on a pro rata
1520 (II) If, during the first 10 business days of the state
1521 fiscal year, eligible tax credit applications for projects other
1522 than those that provide homeownership opportunities for low
1523 income or very-low-income households as defined in s.
1524 420.9071 (19) and (28) are received for less than the annual tax
1525 credits available for those projects, the office shall grant tax
1526 credits for those applications and shall grant remaining tax
1527 credits on a first-come, first-served basis for any subsequent
1528 eligible applications received before the end of the state
1529 fiscal year. If, during the first 10 business days of the state
1530 fiscal year, eligible tax credit applications for projects other
1531 than those that provide homeownership opportunities for low
1532 income or very-low-income households as defined in s.
1533 420.9071 (19) and (28) are received for more than the annual tax
1534 credits available for those projects, the office shall grant the
1535 tax credits for those applications on a pro rata basis.
1536 3. Application requirements.—
1537 a. Any eligible sponsor seeking to participate in this
1538 program must submit a proposal to the Office of Tourism, Trade,
1539 and Economic Development which sets forth the name of the
1540 sponsor, a description of the project, and the area in which the
1541 project is located, together with such supporting information as
1542 is prescribed by rule. The proposal must also contain a
1543 resolution from the local governmental unit in which the project
1544 is located certifying that the project is consistent with local
1545 plans and regulations.
1546 b. Any person seeking to participate in this program must
1547 submit an application for tax credit to the office which sets
1548 forth the name of the sponsor, a description of the project, and
1549 the type, value, and purpose of the contribution. The sponsor
1550 shall verify the terms of the application and indicate its
1551 receipt of the contribution, which verification must be in
1552 writing and accompany the application for tax credit. The person
1553 must submit a separate tax credit application to the office for
1554 each individual contribution that it makes to each individual
1556 c. Any person who has received notification from the office
1557 that a tax credit has been approved must apply to the department
1558 to receive the refund. Application must be made on the form
1559 prescribed for claiming refunds of sales and use taxes and be
1560 accompanied by a copy of the notification. A person may submit
1561 only one application for refund to the department within any 12
1562 month period.
1563 4. Administration.—
1564 a. The Office of Tourism, Trade, and Economic Development
1565 may adopt rules pursuant to ss. 120.536 (1) and 120.54 necessary
1566 to administer this paragraph, including rules for the approval
1567 or disapproval of proposals by a person.
1568 b. The decision of the office must be in writing, and, if
1569 approved, the notification shall state the maximum credit
1570 allowable to the person. Upon approval, the office shall
1571 transmit a copy of the decision to the Department of Revenue.
1572 c. The office shall periodically monitor all projects in a
1573 manner consistent with available resources to ensure that
1574 resources are used in accordance with this paragraph; however,
1575 each project must be reviewed at least once every 2 years.
1576 d. The office shall, in consultation with the Department of
1577 Community Affairs and the statewide and regional housing and
1578 financial intermediaries, market the availability of the
1579 community contribution tax credit program to community-based
1581 5. Notwithstanding sub-subparagraph 1.e., and for the 2008
1582 2009 fiscal year only, the total amount of tax credit which may
1583 be granted for all programs approved under this section and ss.
1584 220.183 and 624.5105 is $13 million annually for projects that
1585 provide homeownership opportunities for low-income or very-low
1586 income households as defined in s. 420.9071 (19) and (28) and
1587 $3.5 million annually for all other projects. This subparagraph
1588 expires June 30, 2009.
1589 6. Expiration.—This paragraph expires June 30, 2015;
1590 however, any accrued credit carryover that is unused on that
1591 date may be used until the expiration of the 3-year carryover
1592 period for such credit.
1593 (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.—There are also
1594 exempt from the tax imposed by this chapter sales made to the
1595 United States Government, a state, or any county, municipality,
1596 or political subdivision of a state when payment is made
1597 directly to the dealer by the governmental entity. This
1598 exemption shall not inure to any transaction otherwise taxable
1599 under this chapter when payment is made by a government employee
1600 by any means, including, but not limited to, cash, check, or
1601 credit card when that employee is subsequently reimbursed by the
1602 governmental entity. This exemption does not include sales of
1603 tangible personal property made to contractors employed either
1604 directly or as agents of any such government or political
1605 subdivision thereof when such tangible personal property goes
1606 into or becomes a part of public works owned by such government
1607 or political subdivision. A determination whether a particular
1608 transaction is properly characterized as an exempt sale to a
1609 government entity or a taxable sale to a contractor shall be
1610 based on the substance of the transaction rather than the form
1611 in which the transaction is cast. The department shall adopt
1612 rules that give special consideration to factors that govern the
1613 status of the tangible personal property before its affixation
1614 to real property. In developing these rules, assumption of the
1615 risk of damage or loss is of paramount consideration in the
1616 determination. This exemption does not include sales, rental,
1617 use, consumption, or storage for use in any political
1618 subdivision or municipality in this state of machines and
1619 equipment and parts and accessories therefor used in the
1620 generation, transmission, or distribution of electrical energy
1621 by systems owned and operated by a political subdivision in this
1622 state for transmission or distribution expansion. Likewise
1623 exempt are charges for services rendered by radio and television
1624 stations, including line charges, talent fees, or license fees
1625 and charges for films, videotapes, and transcriptions used in
1626 producing radio or television broadcasts. The exemption provided
1627 in this subsection does not include sales, rental, use,
1628 consumption, or storage for use in any political subdivision or
1629 municipality in this state of machines and equipment and parts
1630 and accessories therefor used in providing two-way
1631 telecommunications services to the public for hire by the use of
1632 a telecommunications facility, as defined in s. 364.02 (15), and
1633 for which a certificate is required under chapter 364, which
1634 facility is owned and operated by any county, municipality, or
1635 other political subdivision of the state. Any immunity of any
1636 political subdivision of the state or other entity of local
1637 government from taxation of the property used to provide
1638 telecommunication services that is taxed as a result of this
1639 section is hereby waived. However, the exemption provided in
1640 this subsection includes transactions taxable under this chapter
1641 which are for use by the operator of a public-use airport, as
1642 defined in s. 332.004 , in providing such telecommunications
1643 services for the airport or its tenants, concessionaires, or
1644 licensees, or which are for use by a public hospital for the
1645 provision of such telecommunications services.
1646 (3) (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
1647 entity by this chapter do not inure to any transaction that is
1648 otherwise taxable under this chapter when payment is made by a
1649 representative or employee of the entity by any means,
1650 including, but not limited to, cash, check, or credit card, even
1651 when that representative or employee is subsequently reimbursed
1652 by the entity. In addition, exemptions provided to any entity by
1653 this subsection do not inure to any transaction that is
1654 otherwise taxable under this chapter unless the entity has
1655 obtained a sales tax exemption certificate from the department
1656 or the entity obtains or provides other documentation as
1657 required by the department. Eligible purchases or leases made
1658 with such a certificate must be in strict compliance with this
1659 subsection and departmental rules, and any person who makes an
1660 exempt purchase with a certificate that is not in strict
1661 compliance with this subsection and the rules is liable for and
1662 shall pay the tax. The department may adopt rules to administer
1663 this subsection.
1664 (a) Artificial commemorative flowers. —Exempt from the tax
1665 imposed by this chapter is the sale of artificial commemorative
1666 flowers by bona fide nationally chartered veterans’
1668 (b) Boiler fuels. —When purchased for use as a combustible
1669 fuel, purchases of natural gas, residual oil, recycled oil,
1670 waste oil, solid waste material, coal, sulfur, wood, wood
1671 residues or wood bark used in an industrial manufacturing,
1672 processing, compounding, or production process at a fixed
1673 location in this state are exempt from the taxes imposed by this
1674 chapter; however, such exemption shall not be allowed unless the
1675 purchaser signs a certificate stating that the fuel to be
1676 exempted is for the exclusive use designated herein. This
1677 exemption does not apply to the use of boiler fuels that are not
1678 used in manufacturing, processing, compounding, or producing
1679 items of tangible personal property for sale, or to the use of
1680 boiler fuels used by any firm subject to regulation by the
1681 Division of Hotels and Restaurants of the Department of Business
1682 and Professional Regulation.
1683 (c) Crustacea bait. —Also exempt from the tax imposed by
1684 this chapter is the purchase by commercial fishers of bait
1685 intended solely for use in the entrapment of Callinectes sapidus
1686 and Menippe mercenaria .
1687 (d) Feeds. —Feeds for poultry, ostriches, and livestock,
1688 including racehorses and dairy cows, are exempt.
1689 (e) Film rentals. —Film rentals are exempt when an admission
1690 is charged for viewing such film, and license fees and direct
1691 charges for films, videotapes, and transcriptions used by
1692 television or radio stations or networks are exempt.
1693 (f) Flags. —Also exempt are sales of the flag of the United
1694 States and the official state flag of Florida.
1695 (g) Florida Retired Educators Association and its local
1696 chapters. —Also exempt from payment of the tax imposed by this
1697 chapter are purchases of office supplies, equipment, and
1698 publications made by the Florida Retired Educators Association
1699 and its local chapters.
1700 (a) (h) Guide dogs for the blind.—Also exempt are the sale
1701 or rental of guide dogs for the blind, commonly referred to as
1702 “seeing-eye dogs,” and the sale of food or other items for such
1703 guide dogs.
1704 1. The department shall issue a consumer’s certificate of
1705 exemption to any blind person who holds an identification card
1706 as provided for in s. 413.091 and who either owns or rents, or
1707 contemplates the ownership or rental of, a guide dog for the
1708 blind. The consumer’s certificate of exemption shall be issued
1709 without charge and shall be of such size as to be capable of
1710 being carried in a wallet or billfold.
1711 2. The department shall make such rules concerning items
1712 exempt from tax under the provisions of this paragraph as may be
1713 necessary to provide that any person authorized to have a
1714 consumer’s certificate of exemption need only present such a
1715 certificate at the time of paying for exempt goods and shall not
1716 be required to pay any tax thereon.
1717 (i) Hospital meals and rooms. —Also exempt from payment of
1718 the tax imposed by this chapter on rentals and meals are
1719 patients and inmates of any hospital or other physical plant or
1720 facility designed and operated primarily for the care of persons
1721 who are ill, aged, infirm, mentally or physically incapacitated,
1722 or otherwise dependent on special care or attention. Residents
1723 of a home for the aged are exempt from payment of taxes on meals
1724 provided through the facility. A home for the aged is defined as
1725 a facility that is licensed or certified in part or in whole
1726 under chapter 400, chapter 429, or chapter 651, or that is
1727 financed by a mortgage loan made or insured by the United States
1728 Department of Housing and Urban Development under s. 202, s. 202
1729 with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of
1730 the National Housing Act, or other such similar facility
1731 designed and operated primarily for the care of the aged.
1732 (b) (j) Household fuels.—Also exempt from payment of the tax
1733 imposed by this chapter are sales of utilities to residential
1734 households or owners of residential models in this state by
1735 utility companies who pay the gross receipts tax imposed under
1736 s. 203.01, and sales of fuel to residential households or owners
1737 of residential models, including oil, kerosene, liquefied
1738 petroleum gas, coal, wood, and other fuel products used in the
1739 household or residential model for the purposes of heating,
1740 cooking, lighting, and refrigeration, regardless of whether such
1741 sales of utilities and fuels are separately metered and billed
1742 direct to the residents or are metered and billed to the
1743 landlord. If any part of the utility or fuel is used for a
1744 nonexempt purpose, the entire sale is taxable. The landlord
1745 shall provide a separate meter for nonexempt utility or fuel
1746 consumption. For the purposes of this paragraph, licensed family
1747 day care homes shall also be exempt.
1748 (k) Meals provided by certain nonprofit organizations.
1749 There is exempt from the tax imposed by this chapter the sale of
1750 prepared meals by a nonprofit volunteer organization to
1751 handicapped, elderly, or indigent persons when such meals are
1752 delivered as a charitable function by the organization to such
1753 persons at their places of residence.
1754 (l) Organizations providing special educational, cultural,
1755 recreational, and social benefits to minors. —Also exempt from
1756 the tax imposed by this chapter are sales or leases to and sales
1757 of donated property by nonprofit organizations which are
1758 incorporated pursuant to chapter 617 the primary purpose of
1759 which is providing activities that contribute to the development
1760 of good character or good sportsmanship, or to the educational
1761 or cultural development, of minors. This exemption is extended
1762 only to that level of the organization that has a salaried
1763 executive officer or an elected nonsalaried executive officer.
1764 For the purpose of this paragraph, the term “donated property”
1765 means any property transferred to such nonprofit organization
1766 for less than 50 percent of its fair market value.
1767 (m) Religious institutions. —
1768 1. There are exempt from the tax imposed by this chapter
1769 transactions involving sales or leases directly to religious
1770 institutions when used in carrying on their customary nonprofit
1771 religious activities or sales or leases of tangible personal
1772 property by religious institutions having an established
1773 physical place for worship at which nonprofit religious services
1774 and activities are regularly conducted and carried on.
1775 2. As used in this paragraph, the term “religious
1776 institutions” means churches, synagogues, and established
1777 physical places for worship at which nonprofit religious
1778 services and activities are regularly conducted and carried on.
1779 The term “religious institutions” includes nonprofit
1780 corporations the sole purpose of which is to provide free
1781 transportation services to church members, their families, and
1782 other church attendees. The term “religious institutions” also
1783 includes nonprofit state, nonprofit district, or other nonprofit
1784 governing or administrative offices the function of which is to
1785 assist or regulate the customary activities of religious
1786 institutions. The term “religious institutions” also includes
1787 any nonprofit corporation that is qualified as nonprofit under
1788 s. 501(c)(3) of the Internal Revenue Code of 1986, as amended,
1789 and that owns and operates a Florida television station, at
1790 least 90 percent of the programming of which station consists of
1791 programs of a religious nature and the financial support for
1792 which, exclusive of receipts for broadcasting from other
1793 nonprofit organizations, is predominantly from contributions
1794 from the general public. The term “religious institutions” also
1795 includes any nonprofit corporation that is qualified as
1796 nonprofit under s. 501(c)(3) of the Internal Revenue Code of
1797 1986, as amended, the primary activity of which is making and
1798 distributing audio recordings of religious scriptures and
1799 teachings to blind or visually impaired persons at no charge.
1800 The term “religious institutions” also includes any nonprofit
1801 corporation that is qualified as nonprofit under s. 501(c)(3) of
1802 the Internal Revenue Code of 1986, as amended, the sole or
1803 primary function of which is to provide, upon invitation,
1804 nonprofit religious services, evangelistic services, religious
1805 education, administrative assistance, or missionary assistance
1806 for a church, synagogue, or established physical place of
1807 worship at which nonprofit religious services and activities are
1808 regularly conducted.
1809 (n) Veterans’ organizations. —
1810 1. There are exempt from the tax imposed by this chapter
1811 transactions involving sales or leases to qualified veterans’
1812 organizations and their auxiliaries when used in carrying on
1813 their customary veterans’ organization activities.
1814 2. As used in this paragraph, the term “veterans’
1815 organizations” means nationally chartered or recognized
1816 veterans’ organizations, including, but not limited to, Florida
1817 chapters of the Paralyzed Veterans of America, Catholic War
1818 Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and
1819 the Disabled American Veterans, Department of Florida, Inc.,
1820 which hold current exemptions from federal income tax under s.
1821 501(c)(4) or (19) of the Internal Revenue Code of 1986, as
1823 (o) Schools, colleges, and universities. —Also exempt from
1824 the tax imposed by this chapter are sales or leases to state
1825 tax-supported schools, colleges, or universities.
1826 (p ) Section 501(c)(3) organizations. —Also exempt from the
1827 tax imposed by this chapter are sales or leases to organizations
1828 determined by the Internal Revenue Service to be currently
1829 exempt from federal income tax pursuant to s. 501(c)(3) of the
1830 Internal Revenue Code of 1986, as amended, when such leases or
1831 purchases are used in carrying on their customary nonprofit
1833 (q) Resource recovery equipment. —Also exempt is resource
1834 recovery equipment which is owned and operated by or on behalf
1835 of any county or municipality, certified by the Department of
1836 Environmental Protection under the provisions of s. 403.715 .
1837 (r) School books and school lunches. —This exemption applies
1838 to school books used in regularly prescribed courses of study,
1839 and to school lunches served in public, parochial, or nonprofit
1840 schools operated for and attended by pupils of grades K through
1841 12. Yearbooks, magazines, newspapers, directories, bulletins,
1842 and similar publications distributed by such educational
1843 institutions to their students are also exempt. School books and
1844 food sold or served at community colleges and other institutions
1845 of higher learning are taxable.
1846 (s) Tasting beverages. —Vinous and alcoholic beverages
1847 provided by distributors or vendors for the purpose of “wine
1848 tasting” and “spirituous beverage tasting” as contemplated under
1849 the provisions of ss. 564.06 and 565.12 , respectively, are
1850 exempt from the tax imposed by this chapter.
1851 (t) Boats temporarily docked in state. —
1852 1. Notwithstanding the provisions of chapter 328,
1853 pertaining to the registration of vessels, a boat upon which the
1854 state sales or use tax has not been paid is exempt from the use
1855 tax under this chapter if it enters and remains in this state
1856 for a period not to exceed a total of 20 days in any calendar
1857 year calculated from the date of first dockage or slippage at a
1858 facility, registered with the department, that rents dockage or
1859 slippage space in this state. If a boat brought into this state
1860 for use under this paragraph is placed in a facility, registered
1861 with the department, for repairs, alterations, refitting, or
1862 modifications and such repairs, alterations, refitting, or
1863 modifications are supported by written documentation, the 20-day
1864 period shall be tolled during the time the boat is physically in
1865 the care, custody, and control of the repair facility, including
1866 the time spent on sea trials conducted by the facility. The 20
1867 day time period may be tolled only once within a calendar year
1868 when a boat is placed for the first time that year in the
1869 physical care, custody, and control of a registered repair
1870 facility; however, the owner may request and the department may
1871 grant an additional tolling of the 20-day period for purposes of
1872 repairs that arise from a written guarantee given by the
1873 registered repair facility, which guarantee covers only those
1874 repairs or modifications made during the first tolled period.
1875 Within 72 hours after the date upon which the registered repair
1876 facility took possession of the boat, the facility must have in
1877 its possession, on forms prescribed by the department, an
1878 affidavit which states that the boat is under its care, custody,
1879 and control and that the owner does not use the boat while in
1880 the facility. Upon completion of the repairs, alterations,
1881 refitting, or modifications, the registered repair facility
1882 must, within 72 hours after the date of release, have in its
1883 possession a copy of the release form which shows the date of
1884 release and any other information the department requires. The
1885 repair facility shall maintain a log that documents all
1886 alterations, additions, repairs, and sea trials during the time
1887 the boat is under the care, custody, and control of the
1888 facility. The affidavit shall be maintained by the registered
1889 repair facility as part of its records for as long as required
1890 by s. 213.35 . When, within 6 months after the date of its
1891 purchase, a boat is brought into this state under this
1892 paragraph, the 6-month period provided in s. 212.05 (1)(a)2. or
1893 s. 212.06 (8) shall be tolled.
1894 2. During the period of repairs, alterations, refitting, or
1895 modifications and during the 20-day period referred to in
1896 subparagraph 1., the boat may be listed for sale, contracted for
1897 sale, or sold exclusively by a broker or dealer registered with
1898 the department without incurring a use tax under this chapter;
1899 however, the sales tax levied under this chapter applies to such
1901 3. The mere storage of a boat at a registered repair
1902 facility does not qualify as a tax-exempt use in this state.
1903 4. As used in this paragraph, “registered repair facility”
1905 a. A full-service facility that:
1906 (I) Is located on a navigable body of water;
1907 (II) Has haulout capability such as a dry dock, travel
1908 lift, railway, or similar equipment to service craft under the
1909 care, custody, and control of the facility;
1910 (III) Has adequate piers and storage facilities to provide
1911 safe berthing of vessels in its care, custody, and control; and
1912 (IV) Has necessary shops and equipment to provide repair or
1913 warranty work on vessels under the care, custody, and control of
1914 the facility;
1915 b. A marina that:
1916 (I) Is located on a navigable body of water;
1917 (II) Has adequate piers and storage facilities to provide
1918 safe berthing of vessels in its care, custody, and control; and
1919 (III) Has necessary shops and equipment to provide repairs
1920 or warranty work on vessels; or
1921 c. A shoreside facility that:
1922 (I) Is located on a navigable body of water;
1923 (II) Has adequate piers and storage facilities to provide
1924 safe berthing of vessels in its care, custody, and control; and
1925 (III) Has necessary shops and equipment to provide repairs
1926 or warranty work.
1927 (u) Volunteer fire departments. —Also exempt are
1928 firefighting and rescue service equipment and supplies purchased
1929 by volunteer fire departments, duly chartered under the Florida
1930 Statutes as corporations not for profit.
1931 (v) Professional services. —
1932 1. Also exempted are professional, insurance, or personal
1933 service transactions that involve sales as inconsequential
1934 elements for which no separate charges are made.
1935 2. The personal service transactions exempted pursuant to
1936 subparagraph 1. do not exempt the sale of information services
1937 involving the furnishing of printed, mimeographed, or
1938 multigraphed matter, or matter duplicating written or printed
1939 matter in any other manner, other than professional services and
1940 services of employees, agents, or other persons acting in a
1941 representative or fiduciary capacity or information services
1942 furnished to newspapers and radio and television stations. As
1943 used in this subparagraph, the term “information services”
1944 includes the services of collecting, compiling, or analyzing
1945 information of any kind or nature and furnishing reports thereof
1946 to other persons.
1947 3. This exemption does not apply to any service warranty
1948 transaction taxable under s. 212.0506 .
1949 4. This exemption does not apply to any service transaction
1950 taxable under s. 212.05 (1)(i).
1951 (w) Certain newspaper, magazine, and newsletter
1952 subscriptions, shoppers, and community newspapers. —Likewise
1953 exempt are newspaper, magazine, and newsletter subscriptions in
1954 which the product is delivered to the customer by mail. Also
1955 exempt are free, circulated publications that are published on a
1956 regular basis, the content of which is primarily advertising,
1957 and that are distributed through the mail, home delivery, or
1958 newsstands. The exemption for newspaper, magazine, and
1959 newsletter subscriptions which is provided in this paragraph
1960 applies only to subscriptions entered into after March 1, 1997.
1961 (x) Sporting equipment brought into the state. —Sporting
1962 equipment brought into Florida, for a period of not more than 4
1963 months in any calendar year, used by an athletic team or an
1964 individual athlete in a sporting event is exempt from the use
1965 tax if such equipment is removed from the state within 7 days
1966 after the completion of the event.
1967 (y) Charter fishing vessels. —The charge for chartering any
1968 boat or vessel, with the crew furnished, solely for the purpose
1969 of fishing is exempt from the tax imposed under s. 212.04 or s.
1970 212.05 . This exemption does not apply to any charge to enter or
1971 stay upon any “head-boat,” party boat, or other boat or vessel.
1972 Nothing in this paragraph shall be construed to exempt any boat
1973 from sales or use tax upon the purchase thereof except as
1974 provided in paragraph (t) and s. 212.05 .
1975 (z) Vending machines sponsored by nonprofit or charitable
1976 organizations. —Also exempt are food or drinks for human
1977 consumption sold for 25 cents or less through a coin-operated
1978 vending machine sponsored by a nonprofit corporation qualified
1979 as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal
1980 Revenue Code of 1986, as amended.
1981 (aa) Certain commercial vehicles. —Also exempt is the sale,
1982 lease, or rental of a commercial motor vehicle as defined in s.
1983 207.002 (2), when the following conditions are met:
1984 1. The sale, lease, or rental occurs between two commonly
1985 owned and controlled corporations;
1986 2. Such vehicle was titled and registered in this state at
1987 the time of the sale, lease, or rental; and
1988 3. Florida sales tax was paid on the acquisition of such
1989 vehicle by the seller, lessor, or renter.
1990 (bb) Community cemeteries. —Also exempt are purchases by any
1991 nonprofit corporation that has qualified under s. 501(c)(13) of
1992 the Internal Revenue Code of 1986, as amended, and is operated
1993 for the purpose of maintaining a cemetery that was donated to
1994 the community by deed.
1995 (cc) Works of art. —
1996 1. Also exempt are works of art sold to or used by an
1997 educational institution.
1998 2. This exemption also applies to the sale to or use in
1999 this state of any work of art by any person if it was purchased
2000 or imported exclusively for the purpose of being donated to any
2001 educational institution, or loaned to and made available for
2002 display by any educational institution, provided that the term
2003 of the loan agreement is for at least 10 years.
2004 3. The exemption provided by this paragraph for donations
2005 is allowed only if the person who purchased the work of art
2006 transfers title to the donated work of art to an educational
2007 institution. Such transfer of title shall be evidenced by an
2008 affidavit meeting requirements established by rule to document
2009 entitlement to the exemption. Nothing in this paragraph shall
2010 preclude a work of art donated to an educational institution
2011 from remaining in the possession of the donor or purchaser, as
2012 long as title to the work of art lies with the educational
2014 4. A work of art is presumed to have been purchased in or
2015 imported into this state exclusively for loan as provided in
2016 subparagraph 2., if it is so loaned or placed in storage in
2017 preparation for such a loan within 90 days after purchase or
2018 importation, whichever is later; but a work of art is not deemed
2019 to be placed in storage in preparation for loan for purposes of
2020 this exemption if it is displayed at any place other than an
2021 educational institution.
2022 5. The exemptions provided by this paragraph are allowed
2023 only if the person who purchased the work of art gives to the
2024 vendor an affidavit meeting the requirements, established by
2025 rule, to document entitlement to the exemption. The person who
2026 purchased the work of art shall forward a copy of such affidavit
2027 to the Department of Revenue at the time it is issued to the
2029 6. The exemption for loans provided by subparagraph 2.
2030 applies only for the period during which a work of art is in the
2031 possession of the educational institution or is in storage
2032 before transfer of possession to that institution; and when it
2033 ceases to be so possessed or held, tax based upon the sales
2034 price paid by the owner is payable, and the statute of
2035 limitations provided in s. 95.091 shall begin to run at that
2036 time. However, tax shall not become due if the work of art is
2037 donated to an educational institution after the loan ceases.
2038 7. Any educational institution to which a work of art has
2039 been donated pursuant to this paragraph shall make available to
2040 the department the title to the work of art and any other
2041 relevant information. Any educational institution which has
2042 received a work of art on loan pursuant to this paragraph shall
2043 make available to the department information relating to the
2044 work of art. Any educational institution that transfers from its
2045 possession a work of art as defined by this paragraph which has
2046 been loaned to it must notify the Department of Revenue within
2047 60 days after the transfer.
2048 8. For purposes of the exemptions provided by this
2049 paragraph, the term:
2050 a. “Educational institutions” includes state tax-supported,
2051 parochial, church, and nonprofit private schools, colleges, or
2052 universities that conduct regular classes and courses of study
2053 required for accreditation by or membership in the Southern
2054 Association of Colleges and Schools, the Florida Council of
2055 Independent Schools, or the Florida Association of Christian
2056 Colleges and Schools, Inc.; nonprofit private schools that
2057 conduct regular classes and courses of study accepted for
2058 continuing education credit by a board of the Division of
2059 Medical Quality Assurance of the Department of Health; or
2060 nonprofit libraries, art galleries, performing arts centers that
2061 provide educational programs to school children, which programs
2062 involve performances or other educational activities at the
2063 performing arts center and serve a minimum of 50,000 school
2064 children a year, and museums open to the public.
2065 b. “Work of art” includes pictorial representations,
2066 sculpture, jewelry, antiques, stamp collections and coin
2067 collections, and other tangible personal property, the value of
2068 which is attributable predominantly to its artistic, historical,
2069 political, cultural, or social importance.
2070 (dd) Taxicab leases. —The lease of or license to use a
2071 taxicab or taxicab-related equipment and services provided by a
2072 taxicab company to an independent taxicab operator are exempt,
2073 provided, however, the exemptions provided under this paragraph
2074 only apply if sales or use tax has been paid on the acquisition
2075 of the taxicab and its related equipment.
2076 (ee) Aircraft repair and maintenance labor charges. —There
2077 shall be exempt from the tax imposed by this chapter all labor
2078 charges for the repair and maintenance of qualified aircraft,
2079 aircraft of more than 15,000 pounds maximum certified takeoff
2080 weight, and rotary wing aircraft of more than 10,000 pounds
2081 maximum certified takeoff weight. Except as otherwise provided
2082 in this chapter, charges for parts and equipment furnished in
2083 connection with such labor charges are taxable.
2084 (ff) Certain electricity or steam uses. —
2085 1. Subject to the provisions of subparagraph 4., charges
2086 for electricity or steam used to operate machinery and equipment
2087 at a fixed location in this state when such machinery and
2088 equipment is used to manufacture, process, compound, produce, or
2089 prepare for shipment items of tangible personal property for
2090 sale, or to operate pollution control equipment, recycling
2091 equipment, maintenance equipment, or monitoring or control
2092 equipment used in such operations are exempt to the extent
2093 provided in this paragraph. If 75 percent or more of the
2094 electricity or steam used at the fixed location is used to
2095 operate qualifying machinery or equipment, 100 percent of the
2096 charges for electricity or steam used at the fixed location are
2097 exempt. If less than 75 percent but 50 percent or more of the
2098 electricity or steam used at the fixed location is used to
2099 operate qualifying machinery or equipment, 50 percent of the
2100 charges for electricity or steam used at the fixed location are
2101 exempt. If less than 50 percent of the electricity or steam used
2102 at the fixed location is used to operate qualifying machinery or
2103 equipment, none of the charges for electricity or steam used at
2104 the fixed location are exempt.
2105 2. This exemption applies only to industries classified
2106 under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2107 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2108 and 39 and Industry Group Number 212. As used in this paragraph,
2109 “SIC” means those classifications contained in the Standard
2110 Industrial Classification Manual, 1987, as published by the
2111 Office of Management and Budget, Executive Office of the
2113 3. Possession by a seller of a written certification by the
2114 purchaser, certifying the purchaser’s entitlement to an
2115 exemption permitted by this subsection, relieves the seller from
2116 the responsibility of collecting the tax on the nontaxable
2117 amounts, and the department shall look solely to the purchaser
2118 for recovery of such tax if it determines that the purchaser was
2119 not entitled to the exemption.
2120 4. Such exemption shall be applied as follows: beginning
2121 July 1, 2000, 100 percent of the charges for such electricity or
2122 steam shall be exempt.
2123 (gg) Fair associations. —Also exempt from the tax imposed by
2124 this chapter is the sale, use, lease, rental, or grant of a
2125 license to use, made directly to or by a fair association, of
2126 real or tangible personal property; any charge made by a fair
2127 association, or its agents, for parking, admissions, or for
2128 temporary parking of vehicles used for sleeping quarters;
2129 rentals, subleases, and sublicenses of real or tangible personal
2130 property between the owner of the central amusement attraction
2131 and any owner of an amusement ride, as those terms are used in
2132 ss. 616.15 (1)(b) and 616.242 (3)(a), for the furnishing of
2133 amusement rides at a public fair or exposition; and other
2134 transactions of a fair association which are incurred directly
2135 by the fair association in the financing, construction, and
2136 operation of a fair, exposition, or other event or facility that
2137 is authorized by s. 616.08 . As used in this paragraph, the terms
2138 “fair association” and “public fair or exposition” have the same
2139 meaning as those terms are defined in s. 616.001 . This exemption
2140 does not apply to the sale of tangible personal property made by
2141 a fair association through an agent or independent contractor;
2142 sales of admissions and tangible personal property by a
2143 concessionaire, vendor, exhibitor, or licensee; or rentals and
2144 subleases of tangible personal property or real property between
2145 the owner of the central amusement attraction and a
2146 concessionaire, vendor, exhibitor, or licensee, except for the
2147 furnishing of amusement rides, which transactions are exempt.
2148 (hh) Solar energy systems. —Also exempt are solar energy
2149 systems or any component thereof. The Florida Solar Energy
2150 Center shall from time to time certify to the department a list
2151 of equipment and requisite hardware considered to be a solar
2152 energy system or a component thereof.
2153 (ii) Nonprofit cooperative hospital laundries. —Also exempt
2154 are sales or leases to nonprofit organizations that are
2155 incorporated under chapter 617 and which are treated, for
2156 federal income tax purposes, as cooperatives under subchapter T
2157 of the Internal Revenue Code, whose sole purpose is to offer
2158 laundry supplies and services to their members who must all be
2159 exempt from federal income tax pursuant to s. 501(c)(3) of the
2160 Internal Revenue Code. A member of a nonprofit cooperative
2161 hospital laundry whose Internal Revenue Code status changes
2162 shall, within 90 days after such change, divest all
2163 participation in the cooperative. The provision of laundry
2164 supplies and services to a nonmember business pursuant to a
2165 declaration of emergency under s. 252.36 (2) and a written
2166 emergency plan of operation executed by the members of the
2167 cooperative does not invalidate or cause the denial of a
2168 cooperative’s certificate of exemption.
2169 (jj) Complimentary meals. —Also exempt from the tax imposed
2170 by this chapter are food or drinks that are furnished as part of
2171 a packaged room rate by any person offering for rent or lease
2172 any transient living accommodations as described in s.
2173 509.013 (4)(a) which are licensed under part I of chapter 509 and
2174 which are subject to the tax under s. 212.03 , if a separate
2175 charge or specific amount for the food or drinks is not shown.
2176 Such food or drinks are considered to be sold at retail as part
2177 of the total charge for the transient living accommodations.
2178 Moreover, the person offering the accommodations is not
2179 considered to be the consumer of items purchased in furnishing
2180 such food or drinks and may purchase those items under
2181 conditions of a sale for resale.
2182 (kk) Nonprofit corporation conducting the correctional work
2183 programs. —Products sold pursuant to s. 946.515 by the
2184 corporation organized pursuant to part II of chapter 946 are
2185 exempt from the tax imposed by this chapter. This exemption
2186 applies retroactively to July 1, 1983.
2187 (ll) Parent-teacher organizations, parent-teacher
2188 associations, and schools having grades K through 12. —
2189 1. Sales or leases to parent-teacher organizations and
2190 associations the purpose of which is to raise funds for schools
2191 that teach grades K through 12 and that are associated with
2192 schools having grades K through 12 are exempt from the tax
2193 imposed by this chapter.
2194 2. Parent-teacher organizations and associations described
2195 in subparagraph 1., and schools having grades K through 12, may
2196 pay tax to their suppliers on the cost price of school materials
2197 and supplies purchased, rented, or leased for resale or rental
2198 to students in grades K through 12, of items sold for
2199 fundraising purposes, and of items sold through vending machines
2200 located on the school premises, in lieu of collecting the tax
2201 imposed by this chapter from the purchaser. This paragraph also
2202 applies to food or beverages sold through vending machines
2203 located in the student lunchroom or dining room of a school
2204 having kindergarten through grade 12.
2205 (mm) Mobile home lot improvements. —Items purchased by
2206 developers for use in making improvements to a mobile home lot
2207 owned by the developer may be purchased tax-exempt as a sale for
2208 resale if made pursuant to a contract that requires the
2209 developer to sell a mobile home to a purchaser, place the mobile
2210 home on the lot, and make the improvements to the lot for a
2211 single lump-sum price. The developer must collect and remit
2212 sales tax on the entire lump-sum price.
2213 (nn) Veterans Administration. —When a veteran of the armed
2214 forces purchases an aircraft, boat, mobile home, motor vehicle,
2215 or other vehicle from a dealer pursuant to the provisions of 38
2216 U.S.C. s. 3902(a), or any successor provision of the United
2217 States Code, the amount that is paid directly to the dealer by
2218 the Veterans Administration is not taxable. However, any portion
2219 of the purchase price which is paid directly to the dealer by
2220 the veteran is taxable.
2221 (oo) Complimentary items. —There is exempt from the tax
2222 imposed by this chapter:
2223 1. Any food or drink, whether or not cooked or prepared on
2224 the premises, provided without charge as a sample or for the
2225 convenience of customers by a dealer that primarily sells food
2226 product items at retail.
2227 2. Any item given to a customer as part of a price
2228 guarantee plan related to point-of-sale errors by a dealer that
2229 primarily sells food products at retail.
2231 The exemptions in this paragraph do not apply to businesses with
2232 the primary activity of serving prepared meals or alcoholic
2233 beverages for immediate consumption.
2234 (pp) Donated foods or beverages. —Any food or beverage
2235 donated by a dealer that sells food products at retail to a food
2236 bank or an organization that holds a current exemption from
2237 federal corporate income tax pursuant to s. 501(c) of the
2238 Internal Revenue Code of 1986, as amended, is exempt from the
2239 tax imposed by this chapter.
2240 (qq) Racing dogs. —The sale of a racing dog by its owner is
2241 exempt if the owner is also the breeder of the animal.
2242 (rr) Equipment used in aircraft repair and maintenance.
2243 There shall be exempt from the tax imposed by this chapter
2244 replacement engines, parts, and equipment used in the repair or
2245 maintenance of qualified aircraft, aircraft of more than 15,000
2246 pounds maximum certified takeoff weight, and rotary wing
2247 aircraft of more than 10,300 pounds maximum certified takeoff
2248 weight, when such parts or equipment are installed on such
2249 aircraft that is being repaired or maintained in this state.
2250 (ss) Aircraft sales or leases. —The sale or lease of a
2251 qualified aircraft or an aircraft of more than 15,000 pounds
2252 maximum certified takeoff weight for use by a common carrier is
2253 exempt from the tax imposed by this chapter. As used in this
2254 paragraph, “common carrier” means an airline operating under
2255 Federal Aviation Administration regulations contained in Title
2256 14, chapter I, part 121 or part 129 of the Code of Federal
2258 (tt) Nonprofit water systems. —Sales or leases to a not-for
2259 profit corporation which holds a current exemption from federal
2260 income tax under s. 501(c)(4) or (12) of the Internal Revenue
2261 Code, as amended, are exempt from the tax imposed by this
2262 chapter if the sole or primary function of the corporation is to
2263 construct, maintain, or operate a water system in this state.
2264 (uu) Library cooperatives. —Sales or leases to library
2265 cooperatives certified under s. 257.41 (2) are exempt from the
2266 tax imposed by this chapter.
2267 (vv) Advertising agencies. —
2268 1. As used in this paragraph, the term “advertising agency”
2269 means any firm that is primarily engaged in the business of
2270 providing advertising materials and services to its clients.
2271 2. The sale of advertising services by an advertising
2272 agency to a client is exempt from the tax imposed by this
2273 chapter. Also exempt from the tax imposed by this chapter are
2274 items of tangible personal property such as photographic
2275 negatives and positives, videos, films, galleys, mechanicals,
2276 veloxes, illustrations, digital audiotapes, analog tapes,
2277 printed advertisement copies, compact discs for the purpose of
2278 recording, digital equipment, and artwork and the services used
2279 to produce those items if the items are:
2280 a. Sold to an advertising agency that is acting as an agent
2281 for its clients pursuant to contract, and are created for the
2282 performance of advertising services for the clients;
2283 b. Produced, fabricated, manufactured, or otherwise created
2284 by an advertising agency for its clients, and are used in the
2285 performance of advertising services for the clients; or
2286 c. Sold by an advertising agency to its clients in the
2287 performance of advertising services for the clients, whether or
2288 not the charges for these items are marked up or separately
2291 The exemption provided by this subparagraph does not apply when
2292 tangible personal property such as film, paper, and videotapes
2293 is purchased to create items such as photographic negatives and
2294 positives, videos, films, galleys, mechanicals, veloxes,
2295 illustrations, and artwork that are sold to an advertising
2296 agency or produced in-house by an advertising agency on behalf
2297 of its clients.
2298 3. The items exempted from tax under subparagraph 2. and
2299 the creative services used by an advertising agency to design
2300 the advertising for promotional goods such as displays, display
2301 containers, exhibits, newspaper inserts, brochures, catalogues,
2302 direct mail letters or flats, shirts, hats, pens, pencils, key
2303 chains, or other printed goods or materials are not subject to
2304 tax. However, when such promotional goods are produced or
2305 reproduced for distribution, tax applies to the sales price
2306 charged to the client for such promotional goods.
2307 4. For items purchased by an advertising agency and exempt
2308 from tax under this paragraph, possession of an exemption
2309 certificate from the advertising agency certifying the agency’s
2310 entitlement to exemption relieves the vendor of the
2311 responsibility of collecting the tax on the sale of such items
2312 to the advertising agency, and the department shall look solely
2313 to the advertising agency for recovery of tax if it determines
2314 that the advertising agency was not entitled to the exemption.
2315 5. The exemptions provided by this paragraph apply
2316 retroactively, except that all taxes that have been collected
2317 must be remitted, and taxes that have been remitted before July
2318 1, 1999, on transactions that are subject to exemption under
2319 this paragraph are not subject to refund.
2320 6. The department may adopt rules that interpret or define
2321 the provisions of these exemptions and provide examples
2322 regarding the application of these exemptions.
2323 (ww) Bullion. —The sale of gold, silver, or platinum
2324 bullion, or any combination thereof, in a single transaction is
2325 exempt if the sales price exceeds $500. The dealer must maintain
2326 proper documentation, as prescribed by rule of the department,
2327 to identify that portion of a transaction which involves the
2328 sale of gold, silver, or platinum bullion and is exempt under
2329 this paragraph.
2330 (xx) Certain repair and labor charges. —
2331 1. Subject to the provisions of subparagraphs 2. and 3.,
2332 there is exempt from the tax imposed by this chapter all labor
2333 charges for the repair of, and parts and materials used in the
2334 repair of and incorporated into, industrial machinery and
2335 equipment which is used for the manufacture, processing,
2336 compounding, production, or preparation for shipping of items of
2337 tangible personal property at a fixed location within this
2339 2. This exemption applies only to industries classified
2340 under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2341 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2342 and 39 and Industry Group Number 212. As used in this
2343 subparagraph, “SIC” means those classifications contained in the
2344 Standard Industrial Classification Manual, 1987, as published by
2345 the Office of Management and Budget, Executive Office of the
2347 3. This exemption shall be applied as follows:
2348 a. Beginning July 1, 2000, 50 percent of such charges for
2349 repair parts and labor shall be exempt.
2350 b. Beginning July 1, 2001, 75 percent of such charges for
2351 repair parts and labor shall be exempt.
2352 c. Beginning July 1, 2002, 100 percent of such charges for
2353 repair parts and labor shall be exempt.
2354 (yy) Film and other printing supplies. —Also exempt are the
2355 following materials purchased, produced, or created by
2356 businesses classified under SIC Industry Numbers 275, 276, 277,
2357 278, or 279 for use in producing graphic matter for sale: film,
2358 photographic paper, dyes used for embossing and engraving,
2359 artwork, typography, lithographic plates, and negatives. As used
2360 in this paragraph, “SIC” means those classifications contained
2361 in the Standard Industrial Classification Manual, 1987, as
2362 published by the Office of Management and Budget, Executive
2363 Office of the President.
2364 (zz) People-mover systems. —People-mover systems, and parts
2365 thereof, which are purchased or manufactured by contractors
2366 employed either directly by or as agents for the United States
2367 Government, the state, a county, a municipality, a political
2368 subdivision of the state, or the public operator of a public-use
2369 airport as defined by s. 332.004 (14) are exempt from the tax
2370 imposed by this chapter when the systems or parts go into or
2371 become part of publicly owned facilities. In the case of
2372 contractors who manufacture and install such systems and parts,
2373 this exemption extends to the purchase of component parts and
2374 all other manufacturing and fabrication costs. The department
2375 may provide a form to be used by contractors to provide to
2376 suppliers of people-mover systems or parts to certify the
2377 contractors’ eligibility for the exemption provided under this
2378 paragraph. As used in this paragraph, “people-mover systems”
2379 includes wheeled passenger vehicles and related control and
2380 power distribution systems that are part of a transportation
2381 system for use by the general public, regardless of whether such
2382 vehicles are operator-controlled or driverless, self-propelled
2383 or propelled by external power and control systems, or conducted
2384 on roads, rails, guidebeams, or other permanent structures that
2385 are an integral part of such transportation system. “Related
2386 control and power distribution systems” includes any electrical
2387 or electronic control or signaling equipment, but does not
2388 include the embedded wiring, conduits, or cabling used to
2389 transmit electrical or electronic signals among such control
2390 equipment, power distribution equipment, signaling equipment,
2391 and wheeled vehicles.
2392 (aaa) Florida Fire and Emergency Services Foundation. —Sales
2393 or leases to the Florida Fire and Emergency Services Foundation
2394 are exempt from the tax imposed by this chapter.
2395 (bbb) Railroad roadway materials. —Also exempt from the tax
2396 imposed by this chapter are railroad roadway materials used in
2397 the construction, repair, or maintenance of railways. Railroad
2398 roadway materials shall include rails, ties, ballasts,
2399 communication equipment, signal equipment, power transmission
2400 equipment, and any other track materials.
2401 (ccc) Equipment, machinery, and other materials for
2402 renewable energy technologies. —
2403 1. As used in this paragraph, the term:
2404 a. “Biodiesel” means the mono-alkyl esters of long-chain
2405 fatty acids derived from plant or animal matter for use as a
2406 source of energy and meeting the specifications for biodiesel
2407 and biodiesel blends with petroleum products as adopted by the
2408 Department of Agriculture and Consumer Services. Biodiesel may
2409 refer to biodiesel blends designated BXX, where XX represents
2410 the volume percentage of biodiesel fuel in the blend.
2411 b. “Ethanol” means an anhydrous denatured alcohol produced
2412 by the conversion of carbohydrates meeting the specifications
2413 for fuel ethanol and fuel ethanol blends with petroleum products
2414 as adopted by the Department of Agriculture and Consumer
2415 Services. Ethanol may refer to fuel ethanol blends designated
2416 EXX, where XX represents the volume percentage of fuel ethanol
2417 in the blend.
2418 c. “Hydrogen fuel cells” means equipment using hydrogen or
2419 a hydrogen-rich fuel in an electrochemical process to generate
2420 energy, electricity, or the transfer of heat.
2421 2. The sale or use of the following in the state is exempt
2422 from the tax imposed by this chapter:
2423 a. Hydrogen-powered vehicles, materials incorporated into
2424 hydrogen-powered vehicles, and hydrogen-fueling stations, up to
2425 a limit of $2 million in tax each state fiscal year for all
2427 b. Commercial stationary hydrogen fuel cells, up to a limit
2428 of $1 million in tax each state fiscal year for all taxpayers.
2429 c. Materials used in the distribution of biodiesel (B10
2430 B100) and ethanol (E10-E100), including fueling infrastructure,
2431 transportation, and storage, up to a limit of $1 million in tax
2432 each state fiscal year for all taxpayers. Gasoline fueling
2433 station pump retrofits for ethanol (E10-E100) distribution
2434 qualify for the exemption provided in this sub-subparagraph.
2435 3. The Florida Energy and Climate Commission shall provide
2436 to the department a list of items eligible for the exemption
2437 provided in this paragraph.
2438 4.a. The exemption provided in this paragraph shall be
2439 available to a purchaser only through a refund of previously
2440 paid taxes. An eligible item is subject to refund one time. A
2441 person who has received a refund on an eligible item shall
2442 notify the next purchaser of the item that such item is no
2443 longer eligible for a refund of paid taxes. This notification
2444 shall be provided to each subsequent purchaser on the sales
2445 invoice or other proof of purchase.
2446 b. To be eligible to receive the exemption provided in this
2447 paragraph, a purchaser shall file an application with the
2448 Florida Energy and Climate Commission. The application shall be
2449 developed by the Florida Energy and Climate Commission, in
2450 consultation with the department, and shall require:
2451 (I) The name and address of the person claiming the refund.
2452 (II) A specific description of the purchase for which a
2453 refund is sought, including, when applicable, a serial number or
2454 other permanent identification number.
2455 (III) The sales invoice or other proof of purchase showing
2456 the amount of sales tax paid, the date of purchase, and the name
2457 and address of the sales tax dealer from whom the property was
2459 (IV) A sworn statement that the information provided is
2460 accurate and that the requirements of this paragraph have been
2462 c. Within 30 days after receipt of an application, the
2463 Florida Energy and Climate Commission shall review the
2464 application and shall notify the applicant of any deficiencies.
2465 Upon receipt of a completed application, the Florida Energy and
2466 Climate Commission shall evaluate the application for exemption
2467 and issue a written certification that the applicant is eligible
2468 for a refund or issue a written denial of such certification
2469 within 60 days after receipt of the application. The Florida
2470 Energy and Climate Commission shall provide the department with
2471 a copy of each certification issued upon approval of an
2473 d. Each certified applicant shall be responsible for
2474 forwarding a certified copy of the application and copies of all
2475 required documentation to the department within 6 months after
2476 certification by the Florida Energy and Climate Commission.
2477 e. A refund approved pursuant to this paragraph shall be
2478 made within 30 days after formal approval by the department.
2479 f. The Florida Energy and Climate Commission may adopt the
2480 form for the application for a certificate, requirements for the
2481 content and format of information submitted to the Florida
2482 Energy and Climate Commission in support of the application,
2483 other procedural requirements, and criteria by which the
2484 application will be determined by rule. The department may adopt
2485 all other rules pursuant to ss. 120.536 (1) and 120.54 to
2486 administer this paragraph, including rules establishing
2487 additional forms and procedures for claiming this exemption.
2488 g. The Florida Energy and Climate Commission shall be
2489 responsible for ensuring that the total amounts of the
2490 exemptions authorized do not exceed the limits as specified in
2491 subparagraph 2.
2492 5. The Florida Energy and Climate Commission shall
2493 determine and publish on a regular basis the amount of sales tax
2494 funds remaining in each fiscal year.
2495 6. This paragraph expires July 1, 2010.
2496 (ddd) Advertising materials distributed free of charge by
2497 mail in an envelope. —Likewise exempt are materials consisting
2498 exclusively of advertisements, such as individual coupons or
2499 other individual cards, sheets, or pages of printed advertising,
2500 that are distributed free of charge by mail in an envelope for
2501 10 or more persons on a monthly, bimonthly, or other regular
2503 (eee) Certain delivery charges. —Separately stated charges
2504 that can be avoided at the option of the purchaser for the
2505 delivery, inspection, placement, or removal from packaging or
2506 shipping materials of furniture or appliances by the selling
2507 dealer at the premises of the purchaser or the removal of
2508 similar items from the premises of the purchaser are exempt. If
2509 any charge for delivery, inspection, placement, or removal of
2510 furniture or appliances includes the modification, assembly, or
2511 construction of such furniture or appliances, then all of the
2512 charges are taxable.
2513 (fff) Bookstore operations at a postsecondary educational
2514 institution. —Also exempt from payment of the tax imposed by this
2515 chapter on renting, leasing, letting, or granting a license for
2516 the use of any real property are payments to a postsecondary
2517 educational institution made by any person pursuant to a grant
2518 of the right to conduct bookstore operations on real property
2519 owned or leased by the postsecondary educational institution. As
2520 used in this paragraph, the term “bookstore operations” means
2521 activities consisting predominantly of sales, distribution, and
2522 provision of textbooks, merchandise, and services traditionally
2523 offered in college and university bookstores for the benefit of
2524 the institution’s students, faculty, and staff.
2525 (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2526 FOREIGN COMMERCE.—
2527 (a) The sale or use of vessels and parts thereof used to
2528 transport persons or property in interstate or foreign commerce,
2529 including commercial fishing vessels, is subject to the taxes
2530 imposed in this chapter only to the extent provided herein. The
2531 basis of the tax shall be the ratio of intrastate mileage to
2532 interstate or foreign mileage traveled by the carrier’s vessels
2533 which were used in interstate or foreign commerce and which had
2534 at least some Florida mileage during the previous fiscal year.
2535 The ratio would be determined at the close of the carrier’s
2536 fiscal year. However, during the fiscal year in which the vessel
2537 begins its initial operations in this state, the vessel’s
2538 mileage apportionment factor may be determined on the basis of
2539 an estimated ratio of anticipated miles in this state to
2540 anticipated total miles for that year and, subsequently,
2541 additional tax shall be paid on the vessel, or a refund may be
2542 applied for, on the basis of the actual ratio of the vessel’s
2543 miles in this state to its total miles for that year. This ratio
2544 shall be applied each month to the total Florida purchases of
2545 such vessels and parts thereof which are used in Florida to
2546 establish that portion of the total used and consumed in
2547 intrastate movement and subject to the tax at the applicable
2548 rate. The basis for imposition of any discretionary surtax shall
2549 be as set forth in s. 212.054 . Items, appropriate to carry out
2550 the purposes for which a vessel is designed or equipped and
2551 used, purchased by the owner, operator, or agent of a vessel for
2552 use on board such vessel shall be deemed to be parts of the
2553 vessel upon which the same are used or consumed. Vessels and
2554 parts thereof used to transport persons or property in
2555 interstate and foreign commerce are hereby determined to be
2556 susceptible to a distinct and separate classification for
2557 taxation under the provisions of this chapter. Vessels and parts
2558 thereof used exclusively in intrastate commerce do not qualify
2559 for the proration of tax.
2560 (b) The partial exemption provided for in this subsection
2561 shall not be allowed unless the purchaser signs an affidavit
2562 stating that the item or items to be partially exempted are for
2563 the exclusive use designated herein and setting forth the extent
2564 of such partial exemption. Any person furnishing a false
2565 affidavit to such effect for the purpose of evading payment of
2566 any tax imposed under this chapter is subject to the penalties
2567 set forth in s. 212.12 and as otherwise provided by law.
2568 (c) It is the intent of the Legislature that neither
2569 subsection (4) nor this subsection shall be construed as
2570 imposing the tax provided by this chapter on vessels used as
2571 common carriers, contract carriers, or private carriers, engaged
2572 in interstate or foreign commerce, except to the extent provided
2573 by the pro rata formula provided in subsection (4) and in
2574 paragraph (a).
2575 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2576 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.—
2577 (a) Railroads that are licensed as common carriers by the
2578 Surface Transportation Board and parts thereof used to transport
2579 persons or property in interstate or foreign commerce are
2580 subject to tax imposed in this chapter only to the extent
2581 provided herein. The basis of the tax shall be the ratio of
2582 intrastate mileage to interstate or foreign mileage traveled by
2583 the carrier during the previous fiscal year of the carrier. Such
2584 ratio is to be determined at the close of the carrier’s fiscal
2585 year. However, during the fiscal year in which the railroad
2586 begins its initial operations in this state, the railroad’s
2587 mileage apportionment factor may be determined on the basis of
2588 an estimated ratio of anticipated miles in this state to
2589 anticipated total miles for that year and, subsequently,
2590 additional tax shall be paid on the railroad, or a refund may be
2591 applied for, on the basis of the actual ratio of the railroad’s
2592 miles in this state to its total miles for that year. This ratio
2593 shall be applied each month to the purchases of the railroad in
2594 this state which are used in this state to establish that
2595 portion of the total used and consumed in intrastate movement
2596 and subject to tax under this chapter. The basis for imposition
2597 of any discretionary surtax is set forth in s. 212.054 .
2598 Railroads that are licensed as common carriers by the Surface
2599 Transportation Board and parts thereof used to transport persons
2600 or property in interstate and foreign commerce are hereby
2601 determined to be susceptible to a distinct and separate
2602 classification for taxation under the provisions of this
2604 (b) Motor vehicles that are engaged in interstate commerce
2605 as common carriers, and parts thereof, used to transport persons
2606 or property in interstate or foreign commerce are subject to tax
2607 imposed in this chapter only to the extent provided herein. The
2608 basis of the tax shall be the ratio of intrastate mileage to
2609 interstate or foreign mileage traveled by the carrier’s motor
2610 vehicles which were used in interstate or foreign commerce and
2611 which had at least some Florida mileage during the previous
2612 fiscal year of the carrier. Such ratio is to be determined at
2613 the close of the carrier’s fiscal year. However, during the
2614 fiscal year in which the carrier begins its initial operations
2615 in this state, the carrier’s mileage apportionment factor may be
2616 determined on the basis of an estimated ratio of anticipated
2617 miles in this state to anticipated total miles for that year
2618 and, subsequently, additional tax shall be paid on the carrier,
2619 or a refund may be applied for, on the basis of the actual ratio
2620 of the carrier’s miles in this state to its total miles for that
2621 year. This ratio shall be applied each month to the purchases in
2622 this state of such motor vehicles and parts thereof which are
2623 used in this state to establish that portion of the total used
2624 and consumed in intrastate movement and subject to tax under
2625 this chapter. The basis for imposition of any discretionary
2626 surtax is set forth in s. 212.054 . Motor vehicles that are
2627 engaged in interstate commerce, and parts thereof, used to
2628 transport persons or property in interstate and foreign commerce
2629 are hereby determined to be susceptible to a distinct and
2630 separate classification for taxation under the provisions of
2631 this chapter. Motor vehicles and parts thereof used exclusively
2632 in intrastate commerce do not qualify for the proration of tax.
2633 For purposes of this paragraph, parts of a motor vehicle engaged
2634 in interstate commerce include a separate tank not connected to
2635 the fuel supply system of the motor vehicle into which diesel
2636 fuel is placed to operate a refrigeration unit or other
2638 (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2639 ANOTHER STATE.—
2640 (a) The tax collected on the sale of a new or used motor
2641 vehicle in this state to a resident of another state shall be an
2642 amount equal to the sales tax which would be imposed on such
2643 sale under the laws of the state of which the purchaser is a
2644 resident, except that such tax shall not exceed the tax that
2645 would otherwise be imposed under this chapter. At the time of
2646 the sale, the purchaser shall execute a notarized statement of
2647 his or her intent to license the vehicle in the state of which
2648 the purchaser is a resident within 45 days of the sale and of
2649 the fact of the payment to the State of Florida of a sales tax
2650 in an amount equivalent to the sales tax of his or her state of
2651 residence and shall submit the statement to the appropriate
2652 sales tax collection agency in his or her state of residence.
2653 Nothing in this subsection shall be construed to require the
2654 removal of the vehicle from this state following the filing of
2655 an intent to license the vehicle in the purchaser’s home state
2656 if the purchaser licenses the vehicle in his or her home state
2657 within 45 days after the date of sale.
2658 (b) Notwithstanding the partial exemption allowed in
2659 paragraph (a), a vehicle is subject to this state’s sales tax at
2660 the applicable state sales tax rate plus authorized surtaxes
2661 when the vehicle is purchased by a nonresident corporation or
2662 partnership and:
2663 1. An officer of the corporation is a resident of this
2665 2. A stockholder of the corporation who owns at least 10
2666 percent of the corporation is a resident of this state; or
2667 3. A partner in the partnership who has at least 10 percent
2668 ownership is a resident of this state.
2670 However, if the vehicle is removed from this state within 45
2671 days after purchase and remains outside the state for a minimum
2672 of 180 days, the vehicle may qualify for the partial exemption
2673 allowed in paragraph (a) despite the residency of owners or
2674 stockholders of the purchasing entity.
2675 (c) Nothing herein shall require the payment of tax to the
2676 State of Florida for assessments made prior to July 1, 2001, if
2677 the tax imposed by this section has been paid to the state in
2678 which the vehicle was licensed and the department has assessed a
2679 like amount of tax on the same transactions. This provision
2680 shall apply retroactively to assessments that have been
2681 protested prior to August 1, 1999, and have not been paid on the
2682 date this act takes effect.
2683 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.—
2684 (a) The tax imposed on the sale by a manufacturer of
2685 flyable aircraft, who designs such aircraft, which sale may
2686 include necessary equipment and modifications placed on such
2687 flyable aircraft prior to delivery by the manufacturer, shall be
2688 an amount equal to the sales tax which would be imposed on such
2689 sale under the laws of the state in which the aircraft will be
2691 (b) This partial exemption applies only if the purchaser is
2692 a resident of another state who will not use the aircraft in
2693 this state, or if the purchaser is a resident of another state
2694 and uses the aircraft in interstate or foreign commerce, or if
2695 the purchaser is a resident of a foreign country.
2696 (c) The maximum tax collectible under this subsection may
2697 not exceed 6 percent of the sales price of such aircraft. No
2698 Florida tax may be imposed on the sale of such aircraft if the
2699 state in which the aircraft will be domiciled does not allow
2700 Florida sales or use tax to be credited against its sales or use
2701 tax. Furthermore, no tax may be imposed on the sale of such
2702 aircraft if the state in which the aircraft will be domiciled
2703 has enacted a sales and use tax exemption for flyable aircraft
2704 or if the aircraft will be domiciled outside the United States.
2705 (d) The purchaser shall execute a sworn affidavit attesting
2706 that he or she is not a resident of this state and stating where
2707 the aircraft will be domiciled. If the aircraft is subsequently
2708 used in this state within 6 months of the time of purchase, in
2709 violation of the intent of this subsection, the purchaser shall
2710 be liable for payment of the full use tax imposed by this
2711 chapter and shall be subject to the penalty imposed by s.
2712 212.12 (2), which penalty shall be mandatory. Notwithstanding the
2713 provisions of this paragraph, the owner of an aircraft purchased
2714 pursuant to this subsection may permit the aircraft to be
2715 returned to this state for repairs within 6 months after the
2716 date of sale without the aircraft being in violation of the law
2717 and without incurring liability for payment of tax or penalty on
2718 the purchase price of the aircraft, so long as the aircraft is
2719 removed from this state within 20 days after the completion of
2720 the repairs and such removal can be proven by invoices for fuel,
2721 tie-down, or hangar charges issued by out-of-state vendors or
2722 suppliers or similar documentation.
2723 (12) PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2724 VIDEO TAPES.—
2725 (a) There are exempt from the taxes imposed by this chapter
2726 the gross receipts from the sale or lease of, and the storage,
2727 use, or other consumption in this state of, master tapes or
2728 master records embodying sound, or master films or master video
2729 tapes; except that amounts paid to recording studios or motion
2730 picture or television studios for the tangible elements of such
2731 master tapes, records, films, or video tapes are taxable as
2732 otherwise provided in this chapter. This exemption will inure to
2733 the taxpayer upon presentation of the certificate of exemption
2734 issued to the taxpayer under the provisions of s. 288.1258 .
2735 (b) For the purposes of this subsection, the term:
2736 1. “Amounts paid for the tangible elements” does not
2737 include any amounts paid for the copyrightable, artistic, or
2738 other intangible elements of such master tapes, records, films,
2739 or video tapes, whether designated as royalties or otherwise,
2740 including, but not limited to, services rendered in producing,
2741 fabricating, processing, or imprinting tangible personal
2742 property or any other services or production expenses in
2743 connection therewith which may otherwise be construed as
2744 constituting a “sale” under s. 212.02 .
2745 2. “Master films or master video tapes” means films or
2746 video tapes utilized by the motion picture and television
2747 production industries in making visual images for reproduction.
2748 3. “Master tapes or master records embodying sound” means
2749 tapes, records, and other devices utilized by the recording
2750 industry in making recordings embodying sound.
2751 4. “Motion picture or television studio” means a facility
2752 in which film or video tape productions or parts of productions
2753 are made and which contains the necessary equipment and
2754 personnel for this purpose and includes a mobile unit or vehicle
2755 that is equipped in much the same manner as a stationary studio
2756 and used in the making of film or video tape productions.
2757 5. “Recording studio” means a place where, by means of
2758 mechanical or electronic devices, voices, music, or other sounds
2759 are transmitted to tapes, records, or other devices capable of
2760 reproducing sound.
2761 6. “Recording industry” means any person engaged in an
2762 occupation or business of making recordings embodying sound for
2763 a livelihood or for a profit.
2764 7. “Motion picture or television production industry” means
2765 any person engaged in an occupation or business for a livelihood
2766 or for profit of making visual motion picture or television
2767 visual images for showing on screen or television for
2768 theatrical, commercial, advertising, or educational purposes.
2769 (13) No transactions shall be exempt from the tax imposed
2770 by this chapter except those expressly exempted herein. All laws
2771 granting tax exemptions, to the extent they may be inconsistent
2772 or in conflict with this chapter, including, but not limited to,
2773 the following designated laws, shall yield to and be superseded
2774 by the provisions of this subsection: ss. 125.019 , 153.76 ,
2775 154.2331 , 159.15 , 159.31 , 159.50 , 159.708 , 163.385 , 163.395 ,
2776 215.76 , 243.33 , 315.11 , 348.65 , 348.762 , 349.13 , 403.1834 ,
2777 616.07 , and 623.09 , and the following Laws of Florida, acts of
2778 the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
2779 30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
2780 1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
2781 16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61
2782 2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2783 chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2784 and s. 10, chapter 67-1681. This subsection does not supersede
2785 the authority of a local government to adopt financial and local
2786 government incentives pursuant to s. 163.2517 .
2787 (14) TECHNICAL ASSISTANCE ADVISORY COMMITTEE.—The
2788 department shall establish a technical assistance advisory
2789 committee with public and private sector members, including
2790 representatives of both manufacturers and retailers, to advise
2791 the Department of Revenue and the Department of Health in
2792 determining the taxability of specific products and product
2793 lines pursuant to subsection (1) and paragraph (2)(a). In
2794 determining taxability and in preparing a list of specific
2795 products and product lines that are or are not taxable, the
2796 committee shall not be subject to the provisions of chapter 120.
2797 Private sector members shall not be compensated for serving on
2798 the committee.
2799 (15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.—
2800 (a) Beginning July 1, 1995, charges for electrical energy
2801 used by a qualified business at a fixed location in an
2802 enterprise zone in a municipality which has enacted an ordinance
2803 pursuant to s. 166.231 (8) which provides for exemption of
2804 municipal utility taxes on such businesses or in an enterprise
2805 zone jointly authorized by a county and a municipality which has
2806 enacted an ordinance pursuant to s. 166.231 (8) which provides
2807 for exemption of municipal utility taxes on such businesses
2808 shall receive an exemption equal to 50 percent of the tax
2809 imposed by this chapter, or, if no less than 20 percent of the
2810 employees of the business are residents of an enterprise zone,
2811 excluding temporary and part-time employees, the exemption shall
2812 be equal to 100 percent of the tax imposed by this chapter. A
2813 qualified business may receive such exemption for a period of 5
2814 years from the billing period beginning not more than 30 days
2815 following notification to the applicable utility company by the
2816 department that an exemption has been authorized pursuant to
2817 this subsection and s. 166.231 (8).
2818 (b) To receive this exemption, a business must file an
2819 application, with the enterprise zone development agency having
2820 jurisdiction over the enterprise zone where the business is
2821 located, on a form provided by the department for the purposes
2822 of this subsection and s. 166.231 (8). The application shall be
2823 made under oath and shall include:
2824 1. The name and location of the business.
2825 2. The identifying number assigned pursuant to s. 290.0065
2826 to the enterprise zone in which the business is located.
2827 3. The date on which electrical service is to be first
2828 initiated to the business.
2829 4. The name and mailing address of the entity from which
2830 electrical energy is to be purchased.
2831 5. The date of the application.
2832 6. The name of the city in which the business is located.
2833 7. If applicable, the name and address of each permanent
2834 employee of the business including, for each employee who is a
2835 resident of an enterprise zone, the identifying number assigned
2836 pursuant to s. 290.0065 to the enterprise zone in which the
2837 employee resides.
2838 8. Whether the business is a small business as defined by
2839 s. 288.703 (1).
2840 (c) Within 10 working days after receipt of an application,
2841 the enterprise zone development agency shall review the
2842 application to determine if it contains all information required
2843 pursuant to paragraph (b) and meets the criteria set out in this
2844 subsection. The agency shall certify all applications that
2845 contain the information required pursuant to paragraph (b) and
2846 meet the criteria set out in this subsection as eligible to
2847 receive an exemption. If applicable, the agency shall also
2848 certify if 20 percent of the employees of the business are
2849 residents of an enterprise zone, excluding temporary and part
2850 time employees. The certification shall be in writing, and a
2851 copy of the certification shall be transmitted to the executive
2852 director of the Department of Revenue. The applicant shall be
2853 responsible for forwarding a certified application to the
2854 department within 6 months after the occurrence of the
2855 appropriate qualifying provision set out in paragraph (f).
2856 (d) If, in a subsequent audit conducted by the department,
2857 it is determined that the business did not meet the criteria
2858 mandated in this subsection, the amount of taxes exempted shall
2859 immediately be due and payable to the department by the
2860 business, together with the appropriate interest and penalty,
2861 computed from the due date of each bill for the electrical
2862 energy purchased as exempt under this subsection, in the manner
2863 prescribed by this chapter.
2864 (e) The department shall adopt rules governing applications
2865 for, issuance of, and the form of applications for the exemption
2866 authorized in this subsection and provisions for recapture of
2867 taxes exempted under this subsection, and the department may
2868 establish guidelines as to qualifications for exemption.
2869 (f) For the purpose of the exemption provided in this
2870 subsection, the term “qualified business” means a business which
2872 1. First occupying a new structure to which electrical
2873 service, other than that used for construction purposes, has not
2874 been previously provided or furnished;
2875 2. Newly occupying an existing, remodeled, renovated, or
2876 rehabilitated structure to which electrical service, other than
2877 that used for remodeling, renovation, or rehabilitation of the
2878 structure, has not been provided or furnished in the three
2879 preceding billing periods; or
2880 3. Occupying a new, remodeled, rebuilt, renovated, or
2881 rehabilitated structure for which a refund has been granted
2882 pursuant to paragraph (5)(g).
2883 (g) This subsection expires on the date specified in s.
2884 290.016 for the expiration of the Florida Enterprise Zone Act,
2885 except that:
2886 1. Paragraph (d) shall not expire; and
2887 2. Any qualified business which has been granted an
2888 exemption under this subsection prior to that date shall be
2889 allowed the full benefit of this exemption as if this subsection
2890 had not expired on that date.
2891 (16) EXEMPTIONS; SPACE ACTIVITIES.—
2892 (a) There shall be exempt from the tax imposed by this
2894 1. The sale, lease, use, storage, consumption, or
2895 distribution in this state of any orbital space facility, space
2896 propulsion system, or space vehicle, satellite, or station of
2897 any kind possessing space flight capacity, including the
2898 components thereof.
2899 2. The sale, lease, use, storage, consumption, or
2900 distribution in this state of tangible personal property placed
2901 on or used aboard any orbital space facility, space propulsion
2902 system, or space vehicle, satellite, or station of any kind,
2903 irrespective of whether such tangible personal property is
2904 returned to this state for subsequent use, storage, or
2905 consumption in any manner. This exemption is not affected by the
2906 failure of a launch to occur, or the destruction of a launch
2907 vehicle or any components thereof.
2908 (b) This subsection shall be strictly construed and
2910 (17) EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.—
2911 (a) Subject to paragraph (d), the tax imposed by this
2912 chapter does not apply to the sale to or use by a government
2913 contractor of overhead materials. The term “government
2914 contractor” includes prime contractors and subcontractors.
2915 (b) As used in this subsection, the term “overhead
2916 materials” means all tangible personal property, other than
2917 qualifying property as defined in s. 212.02 (14)(a) and
2918 electricity, which is used or consumed in the performance of a
2919 qualifying contract, title to which property vests in or passes
2920 to the government under the contract.
2921 (c) As used in this subsection and in s. 212.02 (14)(a), the
2922 term “qualifying contract” means a contract with the United
2923 States Department of Defense or the National Aeronautics and
2924 Space Administration, or a subcontract thereunder, but does not
2925 include a contract or subcontract for the repair, alteration,
2926 improvement, or construction of real property, except to the
2927 extent that purchases under such a contract would otherwise be
2928 exempt from the tax imposed by this chapter.
2929 (d) The exemption provided in this subsection applies as
2931 1. Beginning July 1, 2000, the tax imposed by this chapter
2932 shall be applicable to 60 percent of the sales price or cost
2933 price of such overhead materials.
2934 2. Beginning July 1, 2001, the tax imposed by this chapter
2935 shall be applicable to 40 percent of the sales price or cost
2936 price of such overhead materials.
2937 3. Beginning July 1, 2002, the tax imposed by this chapter
2938 shall be applicable to 20 percent of the sales price or cost
2939 price of such overhead materials.
2940 4. Beginning July 1, 2003, the entire sales price or cost
2941 price of such overhead materials is exempt from the tax imposed
2942 by this chapter.
2944 The exemption provided in this subsection does not apply to any
2945 part of the cost of overhead materials allocated to a contract
2946 that is not a qualifying contract.
2947 (e) Possession by a seller of a resale certificate or
2948 direct-pay permit relieves the seller from the responsibility of
2949 collecting the tax, and the department shall look solely to the
2950 contractor for recovery of such tax if it determines that the
2951 contractor was not entitled to the exemption. The contractor
2952 shall self-accrue and remit any applicable sales or use tax due
2953 with respect to overhead materials and with respect to costs
2954 allocable to contracts that are not qualifying contracts. The
2955 department may amend its rules to reflect the use of resale
2956 certificates and direct-pay permits with respect to the
2957 exemption provided for in this subsection.
2958 (f) This subsection is not an expression of legislative
2959 intent as to the applicability of any tax to any sale or use of
2960 overhead materials prior to July 1, 1999. In addition, this
2961 subsection does not imply that transactions or costs that are
2962 not described in this subsection are taxable.
2963 (18) MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2964 RESEARCH AND DEVELOPMENT.—
2965 (a) Machinery and equipment used predominantly for research
2966 and development as defined in this subsection are exempt from
2967 the tax imposed by this chapter.
2968 (b) For purposes of this subsection:
2969 1. “Machinery and equipment” includes, but is not limited
2970 to, molds, dies, machine tooling, other appurtenances or
2971 accessories to machinery and equipment, testing and measuring
2972 equipment, test beds, computers, and software, whether purchased
2973 or self-fabricated, and, if self-fabricated, includes materials
2974 and labor for design, fabrication, and assembly.
2975 2. “Predominantly” means at least 50 percent of the time.
2976 3. “Research and development” means research that has one
2977 of the following as its ultimate goal:
2978 a. Basic research in a scientific field of endeavor;
2979 b. Advancing knowledge or technology in a scientific or
2980 technical field of endeavor;
2981 c. The development of a new product, whether or not the new
2982 product is offered for sale;
2983 d. The improvement of an existing product, whether or not
2984 the improved product is offered for sale;
2985 e. The development of new uses of an existing product,
2986 whether or not a new use is offered as a rationale to purchase
2987 the product; or
2988 f. The design and development of prototypes, whether or not
2989 a resulting product is offered for sale.
2991 The term “research and development” does not include ordinary
2992 testing or inspection of materials or products used for quality
2993 control, market research, efficiency surveys, consumer surveys,
2994 advertising and promotions, management studies, or research in
2995 connection with literary, historical, social science,
2996 psychological, or other similar nontechnical activities.
2997 (c) The department may adopt rules pursuant to ss.
2998 120.536 (1) and 120.54 that provide for administering and
2999 implementing this exemption.
3000 (d) A person who claims the exemption provided in this
3001 subsection shall furnish the vendor of the machinery or
3002 equipment, including the vendor of materials and labor used in
3003 self-fabrication of the machinery or equipment, an affidavit
3004 stating that the item or items for which an exemption is claimed
3005 are machinery and equipment that will be used predominantly for
3006 research and development as required by this subsection. A
3007 purchaser who claims the exemption by refund shall include the
3008 affidavit with the refund application. The affidavit must
3009 contain the purchaser’s name, address, sales and use tax
3010 registration number, and, if applicable, federal employer’s
3011 identification number. Any person fraudulently furnishing an
3012 affidavit to the vendor for the purpose of evading payment of
3013 any tax imposed under this chapter shall be subject to the
3014 penalty set forth in s. 212.085 and as otherwise provided by
3016 (e) In lieu of furnishing an affidavit, a purchaser
3017 claiming the exemption provided in this subsection who has a
3018 direct-pay permit may furnish the vendor with a copy of the
3019 direct-pay permit and shall maintain all documentation necessary
3020 to prove the exempt status of the purchases and fabrication
3022 (f) Purchasers shall maintain all documentation necessary
3023 to prove the exempt status of purchases and fabrication activity
3024 and make such documentation available for inspection pursuant to
3025 the requirements of s. 212.13 (2).
3026 Section 4. (1) Effective July 1, 2012, ss. 212.051,
3027 212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3028 212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3029 (2) Unless modified or reenacted as provided in s. 11.9035,
3030 Florida Statutes, effective July 1, 2012, any exemption,
3031 deduction, or credit from the state sales and use tax or any
3032 exclusion of sales and services from such tax granted by the
3033 following sections is repealed:
3034 (a) Section 212.02, Florida Statutes, except rent on low
3035 income housing under s. 212.02(2), Florida Statutes;
3036 (b) Section 212.03, Florida Statutes, except rent charges
3037 paid by long-term residents under s. 212.03(4), Florida
3038 Statutes; rent charges paid by full-time students, by active
3039 military personnel, and by permanent residents under s.
3040 212.03(7)(a), Florida Statutes; rent charges in mobile home
3041 parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3042 for living accommodations in migrant labor camps under s.
3043 212.03(7)(d), Florida Statutes;
3044 (c) Section 212.031, Florida Statutes, except utility
3045 charges under s. 212.031(7), Florida Statutes;
3046 (d) Sections 212.04, 212.05, and 212.0506, Florida
3048 (e) Sections 212.06 and 212.081, Florida Statutes, except
3049 any sale exempted by federal law or the United States
3050 Constitution; and
3051 (f) Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3052 Florida Statutes.
3053 Section 5. Except as otherwise expressly provided in this
3054 act, this act shall take effect July 1, 2010.