October 01, 2020
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
Amendment CaShTmL-604084.HTM
    Florida Senate - 2005                      COMMITTEE AMENDMENT
    Bill No. CS for SB 2362
                        Barcode 604084
                            CHAMBER ACTION
              Senate                               House
                                   .                    
                                   .                    
 1                                 .                    
                                   .                    
 2                                 .                    
                                   .                    
 3                                 .                    
                                   .                    
 4  ______________________________________________________________
 5  
 6  
 7  
 8  
 9  
10  ______________________________________________________________
11  The Committee on Education (King) recommended the following
12  amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Subsection (2) of section 212.052, Florida
19  Statutes, is amended to read:
20         212.052  Research or development costs; exemption.--
21         (2)  Notwithstanding any provision of this chapter to
22  the contrary, any person, including an affiliated group as
23  defined in s. 1504 of the Internal Revenue Code of 1954, as
24  amended, who manufactures, produces, compounds, processes, or
25  fabricates in any manner tangible personal property for such
26  taxpayer's own use directly and solely in research or
27  development shall not be subject to the tax imposed by this
28  chapter upon the cost of the product so manufactured,
29  produced, compounded, processed, or fabricated. However, the
30  tax imposed by this chapter shall be due on the purchase,
31  rental, or repair of real property or tangible personal
                                  1
    1:30 PM   04/18/05                              s2362.ed08.jr5

Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 property employed in research or development which is subject 2 to the tax imposed by this chapter at the time of purchase or 3 rental. 4 Section 2. Paragraph (j) of subsection (5) of section 5 212.08, Florida Statutes, is amended to read: 6 212.08 Sales, rental, use, consumption, distribution, 7 and storage tax; specified exemptions.--The sale at retail, 8 the rental, the use, the consumption, the distribution, and 9 the storage to be used or consumed in this state of the 10 following are hereby specifically exempt from the tax imposed 11 by this chapter. 12 (5) EXEMPTIONS; ACCOUNT OF USE.-- 13 (j) Machinery and equipment used in semiconductor, 14 defense, or space technology production and research and 15 development.-- 16 1.a. Industrial machinery and equipment used in 17 semiconductor technology facilities certified by the Office of 18 Tourism, Trade, and Economic Development under subparagraph 6. 19 to manufacture, process, compound, or produce semiconductor 20 technology products for sale or for use by these facilities 21 are exempt from the tax imposed by this chapter. For purposes 22 of this paragraph, industrial machinery and equipment includes 23 molds, dies, machine tooling, other appurtenances or 24 accessories to machinery and equipment, testing equipment, 25 test beds, computers, and software, whether purchased or 26 self-fabricated, and, if self-fabricated, includes materials 27 and labor for design, fabrication, and assembly. 28 b. Building materials purchased for use in 29 manufacturing or expanding clean rooms in 30 semiconductor-manufacturing facilities are exempt from the tax 31 imposed by this chapter. 2 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 c.b. Industrial machinery and equipment used in 2 defense or space technology facilities certified by the Office 3 of Tourism, Trade, and Economic Development under subparagraph 4 6. to manufacture, process, compound, or produce defense 5 technology products or space technology products for sale or 6 for use by these facilities are exempt from 25 percent of the 7 tax imposed by this chapter. 8 d. Machinery and equipment used predominantly for 9 research and development as defined in s. 212.052 are exempt 10 from the tax imposed by this chapter. 11 2.a. Machinery and equipment are exempt from the tax 12 imposed by this chapter if used predominately in semiconductor 13 wafer research and development activities in a semiconductor 14 technology research and development facility certified under 15 subparagraph 6. For purposes of this paragraph, machinery and 16 equipment includes molds, dies, machine tooling, other 17 appurtenances or accessories to machinery and equipment, 18 testing equipment, test beds, computers, and software, whether 19 purchased or self-fabricated, and, if self-fabricated, 20 includes materials and labor for design, fabrication, and 21 assembly. 22 b. Machinery and equipment are exempt from 25 percent 23 of the tax imposed by this chapter if used predominately in 24 defense or space research and development activities in a 25 defense or space technology research and development facility 26 certified under subparagraph 6. 27 3. Building materials purchased for use in 28 manufacturing or expanding clean rooms in 29 semiconductor-manufacturing facilities are exempt from the tax 30 imposed by this chapter. 31 4. In addition to meeting the criteria mandated by 3 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 subparagraph 1., subparagraph 2., or subparagraph 3., a 2 business must be certified by the Office of Tourism, Trade, 3 and Economic Development as authorized in this paragraph in 4 order to qualify for exemption under this paragraph. 5 5. For items purchased tax exempt pursuant to this 6 paragraph, possession of a written certification from the 7 purchaser, certifying the purchaser's entitlement to exemption 8 pursuant to this paragraph, relieves the seller of the 9 responsibility of collecting the tax on the sale of such 10 items, and the department shall look solely to the purchaser 11 for recovery of tax if it determines that the purchaser was 12 not entitled to the exemption. 13 6.a. To be eligible to receive the exemption provided 14 by subparagraph 1., subparagraph 2., or subparagraph 3., a 15 qualifying business entity shall apply to Enterprise Florida, 16 Inc. The application shall be developed by the Office of 17 Tourism, Trade, and Economic Development in consultation with 18 Enterprise Florida, Inc. 19 b. Enterprise Florida, Inc., shall review each 20 submitted application and information and determine whether or 21 not the application is complete within 5 working days. Once an 22 application is complete, Enterprise Florida, Inc., shall, 23 within 10 working days, evaluate the application and recommend 24 approval or disapproval of the application to the Office of 25 Tourism, Trade, and Economic Development. 26 c. Upon receipt of the application and recommendation 27 from Enterprise Florida, Inc., the Office of Tourism, Trade, 28 and Economic Development shall certify within 5 working days 29 those applicants who are found to meet the requirements of 30 this section and notify the applicant, Enterprise Florida, 31 Inc., and the department of the certification. If the Office 4 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 of Tourism, Trade, and Economic Development finds that the 2 applicant does not meet the requirements of this section, it 3 shall notify the applicant and Enterprise Florida, Inc., 4 within 10 working days that the application for certification 5 has been denied and the reasons for denial. The Office of 6 Tourism, Trade, and Economic Development has final approval 7 authority for certification under this section. 8 7.a. A business may apply once each year for the 9 exemption. 10 b. The application must indicate, for program 11 evaluation purposes only, the average number of full-time 12 equivalent employees at the facility over the preceding 13 calendar year, the average wage and benefits paid to those 14 employees over the preceding calendar year, the total 15 investment made in real and tangible personal property over 16 the preceding calendar year, and the total value of tax-exempt 17 purchases and taxes exempted during the previous year. The 18 department shall assist the Office of Tourism, Trade, and 19 Economic Development in evaluating and verifying information 20 provided in the application for exemption. 21 c. The Office of Tourism, Trade, and Economic 22 Development may use the information reported on the 23 application for evaluation purposes only and shall prepare an 24 annual report on the exemption program and its cost and 25 impact. The annual report for the preceding fiscal year shall 26 be submitted to the Governor, the President of the Senate, and 27 the Speaker of the House of Representatives by September 30 of 28 each fiscal year. 29 2.8. A business receiving an certified to receive this 30 exemption under this paragraph may elect to designate one or 31 more state universities or community colleges as recipients of 5 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 up to 100 percent of the amount of the exemption for which 2 they may qualify. To receive these funds, the institution must 3 agree to match the funds so earned with equivalent cash, 4 programs, services, or other in-kind support on a one-to-one 5 basis in the pursuit of research and development projects as 6 requested by the certified business. The rights to any 7 patents, royalties, or real or intellectual property must be 8 vested in the business unless otherwise agreed to by the 9 business and the university or community college. 10 3. The department may adopt rules to implement this 11 exemption and for assumption of self-accrual authority that is 12 authorized by this paragraph. Persons or entities claiming 13 such exemptions shall furnish the vendor of the machinery and 14 equipment, including the vendor of the materials and labor 15 used in self-fabrication of the machinery and equipment, an 16 affidavit stating that the items for which an exemption is 17 claimed are machinery and equipment that will be used for the 18 purposes required by this paragraph. A purchaser who claims 19 the exemption by refund shall include the affidavit with the 20 refund application. The affidavit must contain the purchaser's 21 name, address, sales and use tax registration number, and, if 22 applicable, federal employer identification number. Any person 23 fraudulently furnishing an affidavit to the vendor for the 24 purpose of evading payment of any tax imposed under this 25 chapter shall be subject to the penalty in s. 212.085 and as 26 otherwise provided by law. Purchasers shall maintain all 27 documentation necessary to prove the exempt status of 28 purchases and fabrication activity and make such documentation 29 available for inspection pursuant to s. 212.13(2). In lieu of 30 furnishing an affidavit, a purchaser claiming the exemption in 31 this paragraph who has a direct pay permit may give the vendor 6 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 a copy of the direct pay permit and shall maintain all 2 documentation necessary to prove the exempt status of the 3 purchases and fabrication activity and make such documentation 4 available for inspection pursuant to s. 212.13(2). 5 4.9. As used in this paragraph, the term: 6 a. "Predominately" means at least 50 percent of the 7 time in qualifying research and development. 8 b. "Research and development" means basic and applied 9 research in the science or engineering, as well as the design, 10 development, and testing of prototypes or processes of new or 11 improved products. Research and development does not include 12 market research, routine consumer product testing, sales 13 research, research in the social sciences or psychology, 14 nontechnological activities, or technical services. 15 b.c. "Semiconductor technology products" means raw 16 semiconductor wafers or semiconductor thin films that are 17 transformed into semiconductor memory or logic wafers, 18 including wafers containing mixed memory and logic circuits; 19 related assembly and test operations; active-matrix flat panel 20 displays; semiconductor chips; semiconductor lasers; 21 optoelectronic elements; and related semiconductor technology 22 products as determined by the Office of Tourism, Trade, and 23 Economic Development. 24 c.d. "Clean rooms" means manufacturing facilities 25 enclosed in a manner that meets the clean manufacturing 26 requirements necessary for high-technology 27 semiconductor-manufacturing environments. 28 d.e. "Defense technology products" means products that 29 have a military application, including, but not limited to, 30 weapons, weapons systems, guidance systems, surveillance 31 systems, communications or information systems, munitions, 7 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 aircraft, vessels, or boats, or components thereof, which are 2 intended for military use and manufactured in performance of a 3 contract with the United States Department of Defense or the 4 military branch of a recognized foreign government or a 5 subcontract thereunder which relates to matters of national 6 defense. 7 e.f. "Space technology products" means products that 8 are specifically designed or manufactured for application in 9 space activities, including, but not limited to, space launch 10 vehicles, missiles, satellites or research payloads, avionics, 11 and associated control systems and processing systems. The 12 term does not include products that are designed or 13 manufactured for general commercial aviation or other uses 14 even though those products may also serve an incidental use in 15 space applications. 16 f. "Industrial machinery and equipment" includes 17 molds, dies, machine tooling, other appurtenances or 18 accessories to machinery and equipment, testing equipment, 19 test beds, computers, and software, whether purchased or 20 self-fabricated, and, if self-fabricated, includes materials 21 and labor for design, fabrication, and assembly. 22 5. The exemption in this paragraph is subject to 23 review by the Legislature no later than July 1, 2015. The 24 Office of Program Policy Analysis and Government 25 Accountability and Enterprise Florida, Inc., shall study this 26 exemption to determine the impact of the exemption on the 27 promotion of research and development activities in this 28 state. Enterprise Florida, Inc., may contract with an 29 independent research organization to perform the assessment. 30 The study shall include the estimated annual cost of the 31 exemption and an estimate of any economic impact of increased 8 1:30 PM 04/18/05 s2362.ed08.jr5
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. CS for SB 2362 Barcode 604084 1 research and development activities. By January 1, 2015, the 2 Office of Program Policy Analysis and Enterprise Florida, 3 Inc., shall submit reports to the Governor, the President of 4 the Senate, and the Speaker of the House of Representatives 5 which provide findings and recommendations as to whether the 6 exemption should be re-enacted by the Legislature. 7 Section 3. This act shall take effect July 1, 2005. 8 9 10 ================ T I T L E A M E N D M E N T =============== 11 And the title is amended as follows: 12 Delete everything before the enacting clause 13 14 and insert: 15 A bill to be entitled 16 An act relating to the tax on sales, use, and 17 other transactions; amending s. 212.052, F.S.; 18 deleting an exception to an exemption from the 19 tax for research or development costs; amending 20 s. 212.08, F.S.; providing an exemption for 21 machinery and equipment used in semiconductor, 22 defense, or space technology research and 23 development activities; providing definitions; 24 providing for the adoption of rules pertaining 25 to procedures to claim exemptions and revising 26 guidelines relating to such procedures; 27 providing for a review of the exemption by the 28 Office of Program Policy Analysis and 29 Government Accountability and Enterprise 30 Florida, Inc.; requiring a report; providing an 31 effective date. 9 1:30 PM 04/18/05 s2362.ed08.jr5
Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2020 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader