June 27, 2019
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       Florida Senate - 2010                                     SB 216
       
       
       
       By Senator Lynn
       
       
       
       
       7-00025-10                                             2010216__
    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.
   46  
   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,
   59  
   60  Be It Enacted by the Legislature of the State of Florida:
   61  
   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
   72  
   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
   76  read:
   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
   94  means.
   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
  133  decisions.
  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
  225  chapter.
  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
  249  apply:
  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
  263  dealer.
  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
  270  products.
  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
  275  containers.
  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
  279  separately.
  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
  311  served.
  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
  411  pools.
  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
  441  enforced.
  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
  463  exemption.
  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
  546  commodity.
  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
  570  percent.
  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
  623  operations.
  624         6. For the purposes of the exemptions provided in
  625  subparagraphs 1. and 2., these terms have the following
  626  meanings:
  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
  645  paragraph.
  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
  735  commencement.
  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.
  741  2168.
  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
  864  includes:
  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
  976  Fund.
  977         8. For the purposes of the exemption provided in this
  978  paragraph:
  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
 1004  refund.
 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
 1070  
 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
 1091  (b);
 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
 1213  Development.
 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
 1217  environments.
 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
 1279  includes:
 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
 1344  includes:
 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
 1397  Development.
 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
 1465  organization;
 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.
 1481  
 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
 1519  basis.
 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
 1555  project.
 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
 1580  organizations.
 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’
 1667  organizations.
 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
 1822  amended.
 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
 1832  activities.
 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
 1900  sale.
 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”
 1904  means:
 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
 2013  institution.
 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
 2028  vendor.
 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
 2112  President.
 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.
 2230  
 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
 2257  Regulations.
 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
 2289  stated.
 2290  
 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
 2338  state.
 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
 2346  President.
 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
 2426  taxpayers.
 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
 2458  purchased.
 2459         (IV) A sworn statement that the information provided is
 2460  accurate and that the requirements of this paragraph have been
 2461  met.
 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
 2472  application.
 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
 2502  basis.
 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
 2603  chapter.
 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
 2637  equipment.
 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
 2664  state;
 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.
 2669  
 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
 2690  domiciled.
 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
 2871  is:
 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
 2893  chapter:
 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
 2909  enforced.
 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
 2930  follows:
 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.
 2943  
 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.
 2990  
 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
 3015  law.
 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
 3021  activity.
 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
 3047  Statutes;
 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.

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