Post-Meeting Packet - Florida Senate Commerce and Tourism Committee (November 30, 2021)
Summary
Post-meeting packet for the Florida Senate Commerce and Tourism committee meeting of Tuesday, November 30, 2021, with Senator Hooper as Chair. The expanded agenda records Favorable actions on SB 356 (ENERGY STAR and WaterSense sales tax holiday, Yeas 9 Nays 0), SB 500 (back-to-school sales tax holiday, Yeas 9 Nays 0), SB 800 (economic development, Yeas 10 Nays 0) and SB 786 (aircraft sales and lease tax, Yeas 8 Nays 2). The analysis of SB 356 describes a three-day sales tax holiday from April 22, 2022 to April 24, 2022 and says the bill will reduce the General Revenue Fund by $4.4 million and local revenues by $1.3 million.
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Cite this document
“Post-Meeting Packet - Florida Senate Commerce and Tourism Committee (November 30, 2021).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-11-30-post-meeting-packet-4885-48a0cfe2ad/
, SHA-256 37ee27867da5668855c45eab9f3ae0586217ec69fe6a3dc4b296b46b40d73d7a.Full text
Selection From: 11/30/2021 - Commerce and Tourism (9:00 AM - 11:30 AM) 2022 Regular Session
Customized 01/13/2022 2:11 PM
Amendment Status
Tab 1 SB 356 by Jones; (Similar to H 00201) Sales Tax Holiday for ENERGY STAR and WaterSense Products
Tab 2 SB 500 by Perry; Back-to-school Sales Tax Holiday
Tab 3 SB 542 by Rodriguez; (Similar to H 00411) Evidentiary Standards for Actions Arising During an Emergency
Tab 4 SB 800 by Albritton; (Compare to H 00685) Economic Development
Tab 5 SB 786 by Hutson; (Identical to H 06051) Aircraft Sales and Lease Tax
303042 A S FAV FT, Hutson Delete L.41 - 42: 01/13 10:26 AM
Tab 6 SB 830 by Hooper; (Similar to H 00509) Sales Tax
643954 A S RCS CM, Hooper Delete L.23 - 196: 11/30 02:59 PM
607718 A S RCS CM, Hooper Delete L.197: 11/30 02:59 PM
Page 1 of 1
2022 Regular Session The Florida Senate
COMMITTEE MEETING EXPANDED AGENDA
COMMERCE AND TOURISM
Senator Hooper, Chair
Senator Wright, Vice Chair
MEETING DATE: Tuesday, November 30, 2021
TIME: 9:00—11:30 a.m.
PLACE: Toni Jennings Committee Room, 110 Senate Building
MEMBERS: Senator Hooper, Chair; Senator Wright, Vice Chair; Senators Diaz, Garcia, Gruters, Hutson, Pizzo,
Powell, Taddeo, and Torres
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
1 SB 356 Sales Tax Holiday for ENERGY STAR and Favorable
Jones WaterSense Products; Providing a sales tax Yeas 9 Nays 0
(Similar H 201) exemption for certain ENERGY STAR and
WaterSense products during a specified timeframe;
defining terms; authorizing the Department of
Revenue to adopt emergency rules, etc.
CM 11/30/2021 Favorable
FT
AP
2 SB 500 Back-to-school Sales Tax Holiday; Providing Favorable
Perry exemptions from the sales and use tax on the retail Yeas 9 Nays 0
sale of certain clothing, wallets, bags, school
supplies, personal computers, and personal
computer-related accessories during a specified
timeframe; specifying locations where the exemptions
do not apply; authorizing certain dealers to opt out of
participating in the tax holiday, subject to certain
requirements, etc.
CM 11/30/2021 Favorable
FT
AP
3 SB 542 Evidentiary Standards for Actions Arising During an Favorable
Rodriguez Emergency; Defining the term “engaged individual”; Yeas 9 Nays 0
(Similar H 411) prohibiting certain actions taken by a business during
a public health emergency from being used as
evidence in certain civil causes of action, etc.
CM 11/30/2021 Favorable
JU
RC
S-036 (10/2008)
11302021.1004 Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Tuesday, November 30, 2021, 9:00—11:30 a.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
4 SB 800 Economic Development; Authorizing municipalities to Favorable
Albritton exempt by ordinance the public service tax that Yeas 10 Nays 0
(Compare H 685) specified users would pay on electrical energy
purchases; providing an exemption from the state tax
on sales, use, and other transactions for building
materials used in the rehabilitation of real property in
an opportunity zone; revising the qualification criteria
and tax credit amounts for new and existing
businesses under the Rural Job Tax Credit Program;
establishing a rural opportunity tax refund program for
qualified target industry businesses in rural areas, etc.
CM 11/30/2021 Favorable
FT
AP
5 SB 786 Aircraft Sales and Lease Tax; Exempting all aircraft Favorable
Hutson sales and leases, rather than the sales and leases of Yeas 8 Nays 2
(Identical H 6051) certain aircraft, from the sales and use tax; deleting
the definition of the term “common carrier” to conform
to changes made by the act, etc.
CM 11/30/2021 Favorable
FT
AP
6 SB 830 Sales Tax; Specifying the sales tax rate on mobile Fav/CS
Hooper homes subject to sales tax as tangible personal Yeas 9 Nays 0
(Similar H 509) property, etc.
CM 11/30/2021 Fav/CS
FT
AP
Other Related Meeting Documents
S-036 (10/2008)
11302021.1004 Page 2 of 2
The Florida Senate
Meeting Date appearance record
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S-001 f08/io/?n?
The Florida Senate DUPLICATE
11/30/21 356
Meeting Date
PPEARANCE RECORD
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Name David Cullen Phone 94-I 323-2404
Address 9830 Elm St Email cullenasea@gmail.com
Ocean City MD 21842
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This for is part of the public record for this eeting.
S-001 (08/10/2021)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 356
INTRODUCER: Senator Jones
SUBJECT: Sales Tax Holiday for ENERGY STAR and WaterSense Products
DATE: November 29, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 356 establishes a three-day sales tax holiday period, from April 22, 2022 to April 24, 2022,
on the retail sale of a new ENERGY STAR or WaterSense product.
The Revenue Estimating Conference determined that the bill will have a cash impact on current
fiscal year 2020-2021. The bill will reduce the General Revenue Fund by $4.4 million, and will
reduce local revenues by $1.3 million.
The bill takes effect upon becoming law.
II. Present Situation:
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,1 admissions,2 transient rentals,3 and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
Sales tax is added to the price of the taxable good or service and collected from the purchaser at
the time of sale.4
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.5 A surtax applies to “all transactions occurring in the county which transactions are subject
1
Section 212.05(1)(a)1.a, F.S.
2
Section 212.04(b), F.S.
3
Section 212.03(1)(a), F.S.
4
See s. 212.07(2), F.S.
5
Section 212.055, F.S.
BILL: SB 356 Page 2
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch.
212, F.S.], and communications services as defined in ch. 202.”6 The discretionary sales surtax is
based on the tax rate imposed by the county where the taxable goods or services are sold or
delivered. Discretionary sales surtax rates currently levied vary by county in a range of 0.5 to 2.5
percent.7
ENERGY STAR and WaterSense
In 1992, the United States Environmental Protection Agency (EPA) established the ENERGY
STAR program under the authority of section 103(g) of the Clean Air Act to promote energy
efficiency.8 The program provides unbiased information on the energy consumption of products
to consumers and businesses.9 The EPA ensures that each product that earns the ENERGY
STAR label is independently certified to deliver energy efficiency. In Florida, approximately 530
businesses and organizations participate in the program.10
WaterSense is a voluntary partnership program sponsored by the EPA with a mission to
encourage water efficiency through the use of a label for water-efficient products. WaterSense
maintains partnerships with manufacturers, retailers and distributors, homebuilders, and utilities
throughout the United States.11
Emergency Rulemaking
State agencies with rulemaking authority in a specific area generally may adopt emergency rules
in that area if there is an immediate danger to the public health, safety, or welfare.12 Emergency
rules typically are effective only for 90 days and may not be renewed except in certain
circumstances.13
III. Effect of Proposed Changes:
The bill establishes a three-day sales tax holiday period, from April 22, 2022, to April 24, 2022,
on the retail sale of a new ENERGY STAR or WaterSense product.
The bill defines an “ENERGY STAR” product as a room air conditioner, air purifier, ceiling fan,
clothes washer or dryer, dehumidifier, dishwasher, freezer, refrigerator, water heater, swimming
6
Section 212.054(2)(a), F.S.
7
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available
at.http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 29, 2021).
8
ENERGY STAR, EPA’s Role, available at https://www.energystar.gov/about/origins_mission/epas_role_energy_star (last
visited Nov. 29, 2021).
9
ENERGY STAR, What is ENERGY STAR, available at https://www.energystar.gov/about (last visited Nov. 29, 2021).
10
ENERGY STAR, Florida Fact Sheet (April 2021), available at
https://www.energystar.gov/sites/default/files/asset/document/2020_State_Fact_Sheet_FL_508.pdf (last visited Nov. 29,
2021).
11
United States Environmental Protection Agency, About WaterSense, available at https://www.epa.gov/watersense/about-
watersense (last visited Nov. 29, 2021).
12
Section 120.54(4), F.S.
13
Section 120.54(4)(c), F.S. Emergency rules typically may be renewed only if the agency has initiated rulemaking to adopt
permanent rules on the same subject and either a challenge to those proposed rules is pending or the proposed rule is still
pending legislative ratification.
BILL: SB 356 Page 3
pool pump, or a package of light bulbs. Additionally, each product must be affixed with an
ENERGY STAR label.
The bill defines a “WaterSense” product as a bathroom sink faucet, faucet accessory, high-
efficiency toilet or urinal, showerhead, or weather- or sensor-based irrigation controller. Each
product must be affixed with a WaterSense label.
The bill provides that only ENERGY STAR products designated by the EPA and the United
States Department of Energy as meeting or exceeding each agency’s requirements under the
ENERGY STAR program or WaterSense products recognized as water efficient by the
WaterSense program by April 1, 2022, qualify for the sales tax holiday.
The Department of Revenue may adopt emergency rules pursuant to s. 120.54(4), F.S.
The bill takes effect upon becoming law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of Art. VII, s. 18 of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws having an insignificant impact,14 15 which is
$2.2 million or less for Fiscal Year 2022-2023.16
The Revenue Estimating Conference determined that the bill will have a cash impact on
current fiscal year 2020-2021. The bill will reduce the General Revenue Fund by $4.4
million, and will reduce local revenues by $1.3 million.
B. Public Records/Open Meetings Issues:
None.
14
FLA. CONST. art. VII, s. 18(d).
15
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last
visited Nov. 29, 2021).
16
Based on the Demographic Estimating Conference’s population adopted on March 3, 2021. The conference packet is
available at http://edr.state.fl.us/Content/conferences/population/demographicsummary.pdf (last visited Nov. 29, 2021).
BILL: SB 356 Page 4
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Not applicable.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference determined that the bill will have a cash impact on
current fiscal year 2020-2021. The bill will reduce the General Revenue Fund by $4.4
million, and will reduce local revenues by $1.3 million.
B. Private Sector Impact:
Persons purchasing certain ENERGY STAR or WaterSense products during the sales tax
holiday will realize savings.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
The bill takes effect upon becoming law. There is a possibility that the bill would not become
law until after the sales tax holiday is supposed to have taken place.
VII. Related Issues:
The bill provides that only ENERGY STAR products meeting or exceeding the requirements
under the ENERGY STAR program by April 1, 2022, or WaterSense products recognized as
water efficient by the WaterSense program by April 1, 2022, qualify for the sales tax holiday.
Dealers of these products may not know if a product became eligible under the programs after
April 1, 2022 and, therefore, would be ineligible for the holiday.
VIII. Statutes Affected:
The bill creates an undesignated section of chapter law.
BILL: SB 356 Page 5
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 SB 356 Florida Senate - 2022 SB 356
By Senator Jones
35-00548-22 2022356__ 35-00548-22 2022356__
1 A bill to be entitled 30 sponsored by the United States Environmental Protection Agency
2 An act relating to a sales tax holiday for ENERGY STAR 31 by April 1, 2022. Each product must be affixed with a WaterSense
3 and WaterSense products; providing a sales tax 32 label.
4 exemption for certain ENERGY STAR and WaterSense 33 (3) The Department of Revenue is authorized, and all
5 products during a specified timeframe; defining terms; 34 conditions are deemed met, to adopt emergency rules pursuant to
6 authorizing the Department of Revenue to adopt 35 s. 120.54(4), Florida Statutes, to administer this section.
7 emergency rules; providing an effective date. 36 Section 2. This act shall take effect upon becoming a law.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. ENERGY STAR and WaterSense products; sales tax
12 holiday.—
13 (1) The tax levied under chapter 212, Florida Statutes, may
14 not be collected during the period from 12:01 a.m. on April 22,
15 2022, through 11:59 p.m. on April 24, 2022, on the retail sale
16 of a new ENERGY STAR or WaterSense product.
17 (2) As used in this section, the term:
18 (a) “ENERGY STAR product” means a room air conditioner, air
19 purifier, ceiling fan, clothes washer, clothes dryer,
20 dehumidifier, dishwasher, freezer, refrigerator, water heater,
21 swimming pool pump, or package of light bulbs designated by the
22 United States Environmental Protection Agency and the United
23 States Department of Energy by April 1, 2022, as meeting or
24 exceeding each agency’s requirements under the ENERGY STAR
25 program. Each product must be affixed with an ENERGY STAR label.
26 (b) “WaterSense product” means a bathroom sink faucet,
27 faucet accessory, high-efficiency toilet or urinal, showerhead,
28 or weather- or sensor-based irrigation controller that is
29 recognized as water efficient by the WaterSense program
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
11/30/2021
Meeting Date
APPEARANCE RECORD 500
Deliver both copies o this form to Bill Number or Topic
Commerce & Tourism Senate professional staff conducting the meeting
Comm ttee
A end ent Barcode (If applicable)
Name Lorena Holley
_ Phone 850.222.4082
Address227 S. Adams Street Email lorena@frf.org
Street
Tallahassee FL 32301
Ci y State Zip
Speaking: [J For IQ Against |O] Information OR Waive S eaking: |gj] In Support IQ] Against
PLEASE CHECK ONE OFTHE FOLLOWI G:
lam appearing without
i am a registere lobbyist,
co pensation or sponsorship. I a not a lobbyist, but received
representing:
something of alue for y appearance
(tra el, meals, lodging, etc,).
sponsored by:
This for Is part of the public record for this eeting.
S-001 (08/10/2021)
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: November 22, 2021
I respectfully request that Senate Bill #500, relating to Back-to-school Sales Tax Holiday, be
placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Keith Perry
Florida Senate, District 8
File signed original with committee office S-020 (03/2004)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 500
INTRODUCER: Senator Perry
SUBJECT: Back-to-school Sales Tax Holiday
DATE: November 29, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 500 establishes a 10-day “back-to-school” sales tax holiday from Friday, July 29, 2022, to
Sunday, August 7, 2022, for certain clothing, school supplies, personal computers, and personal
computer-related accessories.
The Revenue Estimating Conference has not yet estimated the revenue impact of the bill.
The bill takes effect upon becoming law.
II. Present Situation:
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,1 admissions,2 transient rentals,3 and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
Sales tax is added to the price of the taxable good or service and collected from the purchaser at
the time of sale.4
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.5 A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch.
1
Section 212.05(1)(a)1.a, F.S.
2
Section 212.04(b), F.S.
3
Section 212.03(1)(a), F.S.
4
See s. 212.07(2), F.S.
5
Section 212.055, F.S.
BILL: SB 500 Page 2
212, F.S.], and communications services as defined in ch. 202.”6 The discretionary sales surtax is
based on the tax rate imposed by the county where the taxable goods or services are sold or
delivered. Discretionary sales surtax rates currently levied vary by county in a range of 0.5 to 2.5
percent.7
“Back-to-School” Sales Tax Holidays
Florida has enacted a “back-to-school” sales tax holiday 19 times since 1998. The Florida
Residents’ Tax Relief Act of 1998 established Florida’s first tax holiday, during which clothing
purchases of $50 or less were exempt from tax.8 Backpacks were added to the tax holiday in
1999 and school supplies were added in 2001. In 2013, the Legislature expanded the exemption
to include personal computers and related accessories selling for $750 or less, purchased for
noncommercial home or personal use. The duration of “back-to-school” sales tax holidays has
varied from 3 to 10 days. The type and value of exempt items have also varied.9
Florida’s 75 school districts began the 2021-2022 school year between August 10 and August 23,
2020.10
Emergency Rulemaking
State agencies with rulemaking authority in a specific area generally may adopt emergency rules
in that area if there is an immediate danger to the public health, safety or welfare.11 Emergency
rules typically are effective only for 90 days and may not be renewed except in certain
circumstances.12
III. Effect of Proposed Changes:
The bill establishes a 10-day period, from July 29, 2022, to August 7, 2022, during which the
following items are exempt from the state sales tax and local discretionary sales surtaxes:
Clothing with a sales price of $60 or less per item. “Clothing” is defined as any article of
wearing apparel intended to be worn on or about the human body, excluding watches,
watchbands, jewelry, umbrellas, and handkerchiefs. Clothing includes all footwear,
excluding skis, swim fins, in-line skates, and rollerblades;
Wallets and bags with a sales price of $60 or less per item, including handbags, backpacks,
fanny packs, and diaper bags, but excluding briefcases, suitcases, and other garment bags;
6
Section 212.054(2)(a), F.S.
7
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 29, 2021).
8
Chapter 98-341, Laws of Fla.
9
Supra note 7, at 155-162.
10
Florida Department of Education, PK-12 Public School Data Publications and Reports, available at
http://www.fldoe.org/accountability/data-sys/edu-info-accountability-services/pk-12-public-school-data-pubs-
reports/index.stml (last visited Nov. 29, 2021).
11
Section 120.54(4), F.S.
12
Section 120.54(4)(c), F.S. Emergency rules typically may be renewed only if the agency has initiated rulemaking to adopt
permanent rules on the same subject and either a challenge to those proposed rules is pending or the proposed rule is still
pending legislative ratification.
BILL: SB 500 Page 3
School supplies with a sales price of $15 or less per item. “School supplies” is defined as
pens, pencils, erasers, crayons, notebooks, notebook filler paper, legal pads, binders, lunch
boxes, construction paper, markers, folders, poster board, composition books, poster paper,
scissors, cellophane tape, glue or paste, rulers, computer disks, staplers and staples used to
secure paper products, protractors, compasses, and calculators;
Personal computers with a sales price of $1,000 or less per item. “Personal computers”
includes electronic book readers, laptops, desktops, handhelds, tablets, and tower computers
and excludes cellular telephones, video game consoles, digital media receivers, or devices
that are not primarily designed to process data; and
Personal computer-related accessories with a sales price of $1,000 or less per item. “Personal
computer-related accessories” includes keyboards, mice, personal digital assistants, monitors,
other peripheral devices, modems, routers, and non-recreational software regardless of
whether the accessories are used in association with a personal computer base unit. The term
excludes furniture or systems, devices, software, monitors with a television tuner, or
peripherals designed or intended primarily for recreational use.
The bill allows a business to opt out of participating in the sales tax holiday if less than 5 percent
of the business’ gross sales of tangible personal property in the prior calendar consisted of items
that would be exempt under the bill. A business meeting this threshold must notify the
Department of Revenue (department) in writing by July 28, 2022, of its election to collect sales
tax during the holiday. The business must post a copy of that notice in a conspicuous location at
its place of business.
The exemptions provided for in the bill do not apply to the following:
Sales within a theme park or entertainment complex, as defined in s. 509.013(9), F.S.;
Sales within a public lodging establishment, as defined in s. 509.013(4), F.S.; and
Sales within an airport, as defined in s. 330.27(2), F.S.
The department may adopt emergency rules pursuant to s. 120.54(4), F.S., for the purpose of
implementing the bill.
The bill takes effect upon becoming law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
BILL: SB 500 Page 4
mandates requirements do not apply to laws having an insignificant impact,13, 14 which is
$2.2 million or less for Fiscal Year 2022-2023.15
The Revenue Estimating Conference has not yet estimated the revenue impact of the bill.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet estimated the revenue impact of the bill.
B. Private Sector Impact:
Persons purchasing exempted items during the sales tax holidays will realize savings.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
13
FLA. CONST. art. VII, s. 18(d).
14
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last
visited Nov. 29, 2021).
15
Based on the Demographic Estimating Conference’s population adopted on March 3, 2021. The conference packet is
available at http://edr.state.fl.us/Content/conferences/population/demographicsummary.pdf (last visited Nov. 29, 2021).
BILL: SB 500 Page 5
VIII. Statutes Affected:
This bill creates an undesignated section of chapter law:
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 SB 500 Florida Senate - 2022 SB 500
By Senator Perry
8-00611-22 2022500__ 8-00611-22 2022500__
1 A bill to be entitled 30 umbrellas, and handkerchiefs; and
2 An act relating to a back-to-school sales tax holiday; 31 2. All footwear, excluding skis, swim fins, in-line skates,
3 providing exemptions from the sales and use tax on the 32 and roller skates.
4 retail sale of certain clothing, wallets, bags, school 33 (b) School supplies having a sales price of $15 or less per
5 supplies, personal computers, and personal computer- 34 item. As used in this paragraph, the term “school supplies”
6 related accessories during a specified timeframe; 35 means pens, pencils, erasers, crayons, notebooks, notebook
7 defining terms; specifying locations where the 36 filler paper, legal pads, binders, lunch boxes, construction
8 exemptions do not apply; authorizing certain dealers 37 paper, markers, folders, poster board, composition books, poster
9 to opt out of participating in the tax holiday, 38 paper, scissors, cellophane tape, glue or paste, rulers,
10 subject to certain requirements; authorizing the 39 computer disks, staplers and staples used to secure paper
11 Department of Revenue to adopt emergency rules; 40 products, protractors, compasses, and calculators.
12 providing an effective date. 41 (2) The tax levied under chapter 212, Florida Statutes, may
13 42 not be collected during the period from 12:01 a.m. on July 29,
14 Be It Enacted by the Legislature of the State of Florida: 43 2022, through 11:59 p.m. on August 7, 2022, on the retail sale
15 44 of personal computers or personal computer-related accessories
16 Section 1. Clothing, wallets, bags, school supplies, 45 having a sales price of $1,000 or less per item and purchased
17 personal computers, and personal computer-related accessories; 46 for noncommercial home or personal use. As used in this
18 sales tax holiday.— 47 subsection, the term:
19 (1) The tax levied under chapter 212, Florida Statutes, may 48 (a) “Personal computers” includes electronic book readers,
20 not be collected during the period from 12:01 a.m. on July 29, 49 laptops, desktops, handhelds, tablets, and tower computers. The
21 2022, through 11:59 p.m. on August 7, 2022, on the retail sale 50 term does not include cellular telephones, video game consoles,
22 of: 51 digital media receivers, or devices that are not primarily
23 (a) Clothing, wallets, or bags, including handbags, 52 designed to process data.
24 backpacks, fanny packs, and diaper bags, but excluding 53 (b) “Personal computer-related accessories” includes
25 briefcases, suitcases, and other garment bags, having a sales 54 keyboards, mice, personal digital assistants, monitors, other
26 price of $60 or less per item. As used in this paragraph, the 55 peripheral devices, modems, routers, and nonrecreational
27 term “clothing” means: 56 software, regardless of whether the accessories are used in
28 1. Any article of wearing apparel intended to be worn on or 57 association with a personal computer base unit. The term does
29 about the human body, excluding watches, watchbands, jewelry, 58 not include furniture or systems, devices, software, monitors
Page 1 of 3 Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2022 SB 500
8-00611-22 2022500__
59 with a television tuner, or peripherals designed or intended
60 primarily for recreational use.
61 (3) The tax exemptions provided in this section do not
62 apply to sales within a theme park or entertainment complex as
63 defined in s. 509.013(9), Florida Statutes, within a public
64 lodging establishment as defined in s. 509.013(4), Florida
65 Statutes, or within an airport as defined in s. 330.27(2),
66 Florida Statutes.
67 (4) The tax exemptions provided in this section may apply
68 at the option of a dealer if less than 5 percent of the dealer’s
69 gross sales of tangible personal property in the prior calendar
70 year consisted of items that would be exempt under this section.
71 If a qualifying dealer chooses not to participate in the tax
72 holiday, the dealer must notify the Department of Revenue in
73 writing by July 28, 2022, of its election to collect sales tax
74 during the holiday and must post a copy of that notice in a
75 conspicuous location at its place of business.
76 (5) The Department of Revenue may, and all conditions are
77 deemed met to, adopt emergency rules pursuant to s. 120.54(4),
78 Florida Statutes, for the purpose of implementing this section.
79 Notwithstanding any other law, emergency rules adopted pursuant
80 to this subsection are effective for 6 months after adoption and
81 may be renewed during the pendency of procedures to adopt
82 permanent rules addressing the subject of the emergency rule.
83 Section 2. This act shall take effect upon becoming a law.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Meeting Date
APPEARANCE RECORD
Deliver both copies of this for to Bill Number or Topic
Senate professional staff conducting the meeting
Com ittee
Amendment Barcode (if applicable)
Name i ) (•' w
Phone
Address
Street Email
City State Zip
Speaking: Tor Against information OR Waive Speaking: In Support Against
PLEASE CHECK ONE OF THE FOLLOWI G:
| | I am appearing without
Of I a a registered lobbyist,
compensation or sponsorship. | | 1 am not a lobbyist, but received
representing:
so ething of value for appearance
wieHcfws tor (travel, meais, lodging, etc.),
sponsored by:
I oypty Yy
This form is part of the public record for this meeting.
S-001 (08/10/2021)
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: November 16, 2021
I respectfully request that Senate Bill #542, relating to Evidentiary Standards for Actions Arising
During an Emergency, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Ana Maria Rodriguez
Florida Senate, District 39
File signed original with committee office S-020 (03/2004)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 542
INTRODUCER: Senator Rodriguez
SUBJECT: Evidentiary Standards for Actions Arising During an Emergency
DATE: November 29, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Favorable
2. JU
3. RC
I. Summary:
SB 542 provides that the following actions taken by a business during a public health emergency
may not be used as evidence against the business to establish the existence of an employer-
employee relationship in specified civil causes of action:
Providing financial assistance to previously engaged individuals who are unable to work
because of health and safety concerns;
Directly providing benefits related to the health and safety of engaged individuals, including
medical or cleaning supplies, personal protective equipment, health checks, or medical
testing;
Providing training or information related to the health and safety of engaged individuals or
the public; or
Taking any action, including action required or suggested by any federal, state, or local law,
ordinance, order, or directive intended to protect public health and safety.
The term “engaged individual” means an individual who provides a good or service to a business
or on behalf of a business and who is remunerated for the good or service, regardless of the
individual’s classification as an employee or independent contractor.
The bill applies to civil actions relating to workers’ compensation, retaliatory personnel actions,
state minimum wage, labor pool violations, devices used in payment for labor, and unclaimed
wages. Additionally, the bill applies to civil actions to recover lost wages, salary, employment
benefits, or other compensation.
The bill takes effect July 1, 2022.
BILL: SB 542 Page 2
II. Present Situation:
Public Health Emergency
In Florida, the State Health Officer is responsible for declaring public health emergencies,
issuing public health advisories, and ordering isolation or quarantines.1 A “public health
emergency” means any occurrence, or threat of occurrence, which may result in substantial
injury or harm to the public health from infectious disease, chemical agents, nuclear agents,
biological toxins, or situations involving mass casualties or natural disasters.2
Florida Workers’ Compensation System
Each employer and employee is bound by Florida’s Workers’ Compensation Law.3 An employer
must pay compensation or furnish benefits required by the Workers’ Compensation Law if an
employee suffers an accidental compensable injury or death arising out of work performed in the
course and scope of employment.4 The injury must be established to a reasonable degree of
medical certainty, based on objective relevant medical findings, and the accidental compensable
injury must be the major contributing cause of any resulting injuries.5 Generally, employers may
secure coverage from an authorized carrier, qualify as a self-insurer,6 or purchase coverage from
the Workers’ Compensation Joint Underwriting Association, the insurer of last resort.7
An employee has a civil cause of action against his or her employer if the employer:
Failed to carry sufficient workers’ compensation coverage;
Deliberately intended to injure the employee; or
Engaged in conduct that he or she knew was virtually certain to result in the employee’s
injury or death in certain situations.8
Retaliatory Personnel Actions
An employer may not take any retaliatory personnel action9 against an employee because the
employee has:
Disclosed or threatened to disclose, to any appropriate governmental agency, under oath, in
writing, any activity, policy or practice of the employer that violates a law, rule, or
regulation;
Provided information to, or testified before, any appropriate governmental agency, person, or
entity conducting an investigation, hearing, or inquiry into an alleged violation of a law,
ruled, or regulation by the employer; or
1
Section 381.00315, F.S.
2
Section 381.00315(1)(c), F.S.
3
Sections 440.03 and 440.10, F.S.
4
Section 440.09(1), F.S.
5
Id.
6
Section 440.38, F.S.
7
Section 627.311(5)(a), F.S.
8
Section 440.11, F.S.
9
“Retaliatory personnel action” means the discharge, suspension, or demotion by an employer of an employee or any other
adverse employment action taken by an employer against an employee in the terms and conditions of employment. See s.
448.101(5), F.S.
BILL: SB 542 Page 3
Objected to, or refused to participate in, any activity, policy, or practice of the employer
which is in violation of a law, rule, or regulation.10
An employee who is the object of a retaliatory personnel action has a civil cause of action
against his or her employer for the following relief:
An injunction restraining a continued violation;
The employee’s reinstatement to the same position held before the retaliatory personnel
action or to an equivalent position;
Reinstatement of the employee’s full fringe benefits and seniority rights;
Compensation for lost wages, benefits, and other remuneration; and
Any other compensatory damages allowable at law.11
Minimum Wage
The Florida Constitution requires an employer to pay employees a minimum wage. 12 On
September 30, 2021, the minimum wage increased to $10.00 per hour, and will increase each
September 30th by $1.00 per hour until the minimum wage reaches $15.00 per hour on
September 30, 2026.13 An employee not paid the minimum wage may bring a civil cause of
action against his or her employer to recover the full amount of back wages unlawfully withheld,
plus the same amount as liquidated damages.14 An employee bringing such an action may also be
entitled to legal or equitable relief, including employment reinstatement or injunctive relief.15
Labor Pool Violations
A labor pool16 must not:
Charge a day laborer17 for safety equipment, clothing, accessories, any other items required
by the nature of the work, more than a reasonable amount to transport a worker to or from the
designated worksite, or for directly or indirectly cashing a worker’s check;18
Request or require that any day laborer sign any document waiving statutory protections;19
Charge more than the actual cost of providing lunch, if the labor pool provides lunch at the
worksite;20 or
10
Section 448.102, F.S.
11
Section 448.103, F.S.
12
See Art. X, Sec. 24, Fla. Const.
13
Id. On September 30th, 2027 and each subsequent September 30th, the State Agency for Workforce Innovation must
calculate an adjusted minimum wage rate in the manner specified in the State Constitution.
14
Id.
15
Id.
16
“Labor pool” means a business entity that operates a labor hall by one or more of the following methods: contracting with
third-party users to supply day laborers on a temporary basis; hiring, employing, recruiting, or contracting with workers to
fulfill these temporary labor contracts for day labor; or fulfilling any contracts for day labor in accordance with this
subsection, even if the entity also conducts other business. See s. 448.22(1), F.S.
17
“Day labor” means temporary labor or employment that is occasional or irregular for which the worker is employed for not
longer than the time period required to complete the temporary assignment for which the individual worker was hired,
although an individual may be eligible for additional temporary assignments when available. See s. 448.22(2), F.S.
18
Section 448.24(1), F.S.
19
Section 448.24(3), F.S.
20
Section 448.24(4), F.S.
BILL: SB 542 Page 4
Restrict a day laborer’s right to accept a permanent position with a third-party user to whom
the laborer is referred for temporary work, or to restrict the right of such a third-party user to
offer such employment to an employee of the labor pool.21
A labor pool must:
Provide restroom facilities, drinking water, and sufficient seating for a worker waiting at the
labor hall for a job assignment;22
Select cash, commonly accepted negotiable instruments that are payable in cash, a payroll
debit card, or an electronic fund transfer, to pay a day laborer for work performed;23
Notify a day laborer of the payment method that the labor pool intends to use and the day
laborer’s options to elect a different payment method;24
If selecting to pay a day laborer by payroll debit card, offer the day laborer the option to elect
payment by electronic fund transfer and provide the day laborer with a list, including the
address, of a nearby business that does not charge a fee to withdraw the debit card’s
contents;25
Compensate day laborers at or above the minimum wage;26
Comply with the requirements of workers’ compensation;27
Insure any motor vehicle owned or operated by the labor pool and used for worker
transportation;28
Furnish each worker with a written itemized statement showing in detail each wage
deduction; and
Give each worker an annual earnings statement summary.29
Any worker harmed by a labor pool violation may bring a civil action against the labor pool to
recover actual and consequential damages, or $1,000, whichever is greater, for each violation.30
Devices Issued in Payment for Labor
Any order, check, draft, note, memorandum, payroll debit card, or other acknowledgement of
indebtedness for wages due must be negotiable and payable in cash, on demand, without
discount, at some established place of business in Florida.31
Any person issuing a coupon, punch-out, ticket, tokens, or other device in lieu of cash as
payment for labor is:
21
Section 448.24(6), F.S.
22
Section 448.24(5), F.S.
23
Section 448.24(2), F.S.
24
Id.
25
Id.
26
Id.
27
Id.
28
Id.
29
Id.
30
Section 448.25, F.S.
31
The business’s name and address must appear on the instrument or in the payroll debit card issuing materials. At the time
of its issuance, and for at least 30 days thereafter, the maker or drawer must have sufficient funds or credit, arrangement, or
understanding with the drawee for its payment. See s. 532.01, F.S.
BILL: SB 542 Page 5
Liable for the full face value thereof in current legal tender on or after the 30th day after the
date of issuance;
Liable for payment in legal tender; and
Subject to suit brought in any court of competent jurisdiction.32
Additionally, an employer may not terminate an employee solely for refusing to authorize the
direct deposit of wages.33 An employee may bring a civil action against an employer for
equitable relief.34
Unclaimed Wages
Unpaid wages owing in the ordinary course of the holder’s business that have not been claimed
by the owner for more than 1 year after becoming payable are presumed unclaimed.35 Every
holder of unclaimed wages must report the unclaimed wages to the Department of Financial
Services (DFS) before May 1 of each year and must simultaneously pay to DFS all unclaimed
wages required to be reported.36 Employers violating these requirements face penalties imposed
by DFS.37
III. Effect of Proposed Changes:
The bill creates s. 448.111, F.S., and establishes that the following actions taken by a business
during a public health emergency declared by the State Health Officer may not be used as
evidence against the business to establish the existence of an employer-employee relationship in
specified civil causes of action:
Providing financial assistance to previously engaged individuals who are unable to work
because of health and safety concerns;
Directly providing benefits related to the health and safety of engaged individuals, including
medical or cleaning supplies, personal protective equipment, health checks, or medical
testing;
Providing training or information related to the health and safety of engaged individuals or
the public; or
Taking any action, including action required or suggested by any federal, state, or local law,
ordinance, order, or directive intended to protect public health and safety.
The bill defines the term “engaged individual” to mean an individual who provides a good or
service to a business or on behalf of a business and who is remunerated for the good or service,
regardless of the individual’s classification as an employee or independent contractor.
The bill applies to civil actions relating to workers’ compensation, retaliatory personnel actions,
state minimum wage, labor pool violations, devices used in payment for labor, and unclaimed
32
The legal holder’s recovery must include the full face value of the device, with legal interest from the date of demand. See
s. 532.02, F.S.
33
Section 532.04(2), F.S.
34
Section 532.04(3), F.S.
35
Section 717.115, F.S.
36
Sections 717.117 and 717.119, F.S.
37
Id.; Ch. 69I-20, F.A.C.
BILL: SB 542 Page 6
wages. Additionally, the bill applies to civil actions to recover lost wages, salary, employment
benefits, or other compensation.
The bill takes effect July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None Identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill provides that specified actions taken by a business during a public health
emergency may not be used as evidence against the business to establish the existence of
an employer-employee relationship in specified civil causes of action. Thus, the bill
potentially protects businesses from being categorized as a plaintiff’s employer if the
categorization is based exclusively on the specified actions taken by a business during a
public health emergency.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
BILL: SB 542 Page 7
VII. Related Issues:
None.
VIII. Statutes Affected:
The bill creates the following section of the Florida Statutes: 448.111.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 SB 542 Florida Senate - 2022 SB 542
By Senator Rodriguez
39-00329A-22 2022542__ 39-00329A-22 2022542__
1 A bill to be entitled 30 (a) Providing financial assistance to previously engaged
2 An act relating to evidentiary standards for actions 31 individuals who are unable to work because of health and safety
3 arising during an emergency; creating s. 448.111, 32 concerns.
4 F.S.; defining the term “engaged individual”; 33 (b) Directly providing benefits related to the health and
5 prohibiting certain actions taken by a business during 34 safety of engaged individuals, including medical or cleaning
6 a public health emergency from being used as evidence 35 supplies, personal protective equipment, health checks, or
7 in certain civil causes of action; providing an 36 medical testing.
8 effective date. 37 (c) Providing training or information related to the health
9 38 and safety of engaged individuals or the public.
10 Be It Enacted by the Legislature of the State of Florida: 39 (d) Taking any action, including action required or
11 40 suggested by any federal, state, or local law, ordinance, order,
12 Section 1. Section 448.111, Florida Statutes, is created to 41 or directive, which is intended to protect public health and
13 read: 42 safety.
14 448.111 Evidentiary standards for actions of a business 43 Section 2. This act shall take effect July 1, 2022.
15 during an emergency.—
16 (1) For purposes of this section, the term “engaged
17 individual” means an individual who provides a good or service
18 to a business or on behalf of a business and who is remunerated
19 for the good or service, regardless of the individual’s
20 classification as an employee or independent contractor.
21 (2) Notwithstanding any other law, the following actions of
22 a business, if taken during a public health emergency declared
23 by the State Health Officer under s. 381.00315, may not be used
24 as evidence in a civil cause of action brought under s. 440.10,
25 s. 440.192, s. 440.38, s. 440.381, s. 448.103, s. 448.110, s.
26 448.25, chapter 532, or s. 717.115, or in a civil cause of
27 action to recover lost wages, salary, employment benefits, or
28 other compensation, because an individual has not been properly
29 classified as an employee:
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
11/30/21 SB 800
Meeting Date
APPEARANCE ECORD
Deliver both copies of this form to Bill Number orTopic
Commerce Senate professional staff conducting the meeting
Amendm nt Barcode (if applicable)
Name Carolyn Johnson phone 850-521-1200
Address 136 S Bronough St Email cj hnson@flchamber.com
Street ' ~
Tallahassee FL 32301
ty State Zip
Waive Speaking: 0| In Support fQ Against
PLEASE CHECK ONE OF THE FOLLOWING:
0 i am a registere lobbyist, I am not a lobbyist, but received
compensation or sponsorship. 1 representing:
something of value for my a pearance
(travel, meals, lodging, etc.),
FL Chamber of Commerce sponsored by::
WM tiortoencouragepublictes
th t as many persons a possible c n be heard. If you have qu stions about registering to lobby pl ase see Fla. St t. § 11.045 and Joint Rul 1.2020-2022jJ tRuies.ndffflse ate.aov)
This form is part of the public ecord for this meeting.
S-001 (08/10/2021)
The Florida Senate
Meeting bate appearance record
Committee
Name A endment Barcode (if applicable)
Phone f ~ /2. F
Ema"
3 3 '
Speaking: For Q Against Information OR
Waive Speaking: H n Support Against
PLEASE CHECK ONE OF THE FOLLOWING:
I | * 1 am appearing without
co pensation or sponsorship. f arn a registered lobbyist,
representing: z I I 1 am n°t a lobb ist, but received
something of value for my appearance
(travel, eals, lodging, etc.),
sponsored by:
This form is part of the public record for thi eeting.
The Florida Senate
Meeting Date appearance record O0
Deli er both copies of t is for to
Bill Number or Topic
Senate professional staff conducting the m eting
Com ittee
Name A endment Barcod (if applicable)
Phone
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- Emaii
City
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Zip
Speaking: For Against Information OR
Waive Speaking: 0ln Support Against
„ PLEASE CHECK ONE OF THE FOLLOWING:
[ I 'arTl appearing without I
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of Co ip
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The Florida Senate
11/30/2021
Meeting Date
appearance record SB 800
Deli er oth copies of this for to
Senate Commerce Senate professional staff conducting the meeting
Bill Nu ber or Topic
Co mittee
Amendment Barcode (if applicable)
Na e Kraus, county manager Columbia Cnty ph 386-758-1005
Address 135 NE Hernando Avenue, Suite 203
S ree Email bccadmin@columbiacountyfla.com
Lake City FL 32055
City
State
PLEASE CHECK ONE OF THE FOLLOWING:
I am appearing without
co pensation or sponsorship.
representing: I am not a lobbyist, but received
so ething of value for y appearance
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sponsored by:
This fo m is part of the public record for this eeting. ~
1 (08/10/2021)
The Florida Senate
11/30/2021
Meeting Date
APPEARANCE RECORD sb 800
Senate Commerce Deliver oth copies of this form to Bill Number or Topic
Senate professional staff conducting the meeting
Commi tee
Amend ent Barcode (if applicable)
Name Michael Grissom
Phone561-310-4079
Address 2910 Kerry Forest Pkwy, D4-382
Street Email michael.grissom@bipc.com
Tallahassee fl 32309
Zip
Waive Speaking: [0] In Support [Q Ag inst
PLEASE CHECK ONE OF THE FOLLOWING:
J| I am appearing without
compensation or sponsorship. 0 I am a registered lobbyist,
' representing: I a not a lobbyist, but received
something of value for my appearance
FL Rural Economic Develop ent (travel, meals, lodging, etc.),
sponsored by:
Association
This for is part of the public record for th s meeting.
(08/10/2021)
The Florida Senate
November 30, 2021 800
Meeting Date
PPEARANCE RECORD
Deliver both copies of this form to Bill Number or Topic
Co merce and Tourism Senate professional staff conducting the meeting
Co ittee
Amendment Barcode applicable)
Darrick D. McGhee, Sr (850) 321-6489
Na e
Phone
. 537 East Park Avenue darrick@teamib.com
Address
Email
Street
Tallahassee FL 32301
Reset Form
Gfy State Zip
Speaking: IQ for (tj Against [ Information OR Wa ve Spea ng: |jg In Support [Q Against
PLEASE CHECK ONE OF THE FOLLOWING:
tobbylSt niarnnotatobbyistbutrec fc d
g somethingofvalueformyappearance
Florida's Great Northwest !,ravel 'odalnft et3-
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This form is part of the public record for this meeting.
(08/10/2021)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 800
INTRODUCER: Senator Albritton
SUBJECT: Economic Development
DATE: November 29, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 800 creates and modifies economic development programs operating in rural areas and
federally designated opportunity zones. The bill creates the Rural Opportunity Tax Refund
Program to encourage the creation and retention of stable, high-quality jobs by providing tax
refunds to qualified target industry businesses located in rural areas. The bill provides that
qualified target industry businesses are eligible to receive a tax refund of specified taxes equal to
$6,000 per created job. Additionally the bill:
Authorizes municipalities to exempt the public service tax on purchasers of electrical energy
who the Department of Revenue (DOR) determines are eligible as a qualified business in a
federally designated opportunity zone;
Creates a 50 percent sales tax exemption on the purchase of electrical energy to qualified
businesses located in an opportunity zone in a municipality that has enacted an ordinance for
a municipal utility tax exemption;
Exempts building materials used in the rehabilitation of real property located in an
opportunity zone from the state sales tax if certain conditions are met;
Revises the Rural Job Tax Credit Program by removing the requirement that newly eligible
businesses have a minimum of 10 qualified employees on the date of application in order to
receive a tax credit, and revises the tax credit amounts and qualification criteria for
employees of new and existing eligible business; and
Requires the Department of Economic Opportunity (DEO) to allocate an amount equal to 10
percent of the funds in the Florida Job Growth Grant Fund to projects within rural areas of
opportunity for the first quarter of each fiscal year.
The bill is effective July 1, 2022.
BILL: SB 800 Page 2
II. Present Situation:
Florida Sales Tax
Florida levies a six percent sales and use tax on the retail sales or rentals of most tangible
personal property,1 admissions,2 transient rentals,3 and commercial real estate rentals.4 In
addition to the state level tax, counties are authorized to levy discretionary sales surtaxes.5
Generally, the sales tax is added to the price of the taxable good or service and collected from the
purchaser at the time of sale.
Chapter 212, F.S., contains provisions authorizing the levy and collection of Florida’s sales and
use tax, as well as the exemptions and credits applicable to certain items or uses under specified
circumstances. There are currently more than 270 exemptions, exclusions, deductions, and
credits from sales and use tax, 6 including building materials used in the rehabilitation of real
property located in an enterprise zone.7
Municipal Public Service Tax
Municipalities may levy a public service tax on the purchase of electricity, metered natural gas,
liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled,
and water service.8 The tax is levied only upon purchases within the municipality and cannot
exceed 10 percent of the payments received by the seller of the taxable item from the purchaser
for the purchase of the service.
Rural Job Tax Credit Program
The Rural Job Tax Credit Program offers an incentive for eligible businesses located within one
of 36 designated qualified rural areas to create new jobs. The tax credits are provided to
encourage meaningful employment opportunities that will improve the quality of life of those
employed and to encourage economic expansion of new and existing businesses in rural areas of
Florida.9 The tax credit ranges from $1,000 to $1,500 per qualified employee10 and can be taken
against either the corporate income tax or the sales and use tax.11 The credit can only be taken
against one of these two taxes.
1
Section 212.05(1)(a)1.a, F.S.
2
Section 212.04(b), F.S.
3
Section 212.03(1)(a), F.S.
4
The Legislature reduced the sales tax rate on commercial rentals to 5.5 percent effective January 1, 2020. See s. 5, ch. 2019-
42, Laws of Fla.
5
Section 212.055, F.S.
6
Office of Economic and Demographic Research, Florida Tax Handbook, 168-173 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 29, 2021). See section
212.08, F.S.
7
Section 212.08(5)(g), F.S.
8
Section 166.231(1)(a), F.S.
9
Chapter 97-50, s. 2, Laws of Fla.
10
Sections 212.098(2) and 212.098(4), F.S.
11
Section 212.098(11), F.S.
BILL: SB 800 Page 3
An “eligible business” means a sole proprietorship, firm, partnership, or corporation that is
located in a qualified county and is predominantly12 engaged in, or is headquarters for a business
predominantly engaged in activities classified within the following standard industrial
classifications (SIC):13
SIC Description
01-09 Agriculture, forestry, and fishing
20-39 Manufacturing
70 Hotels and other lodging places
422 Public warehousing and storage
781 Motion picture production and allied services
7992 Public golf courses
7996 Amusement parks
A targeted industry eligible for the qualified
target industry business tax refund14
A “qualified area” is defined as:15
Any area that is contained within a rural area of critical economic concern;
A county that has a population of fewer than 75,000 persons; or
A county that has a population of 125,000 or less and is contiguous to a county that has a
population of less than 75,000.
Every third year the Department of Economic Opportunity (DEO) is required to rank and tier the
state’s counties according to the following factors:16
Highest unemployment rate for the most recent 36-month period;
Lowest per capita income for the most recent 36-month period;
Highest percentage of residents whose incomes are below the poverty level, based upon the
most recent data available; and
Average weekly manufacturing wage, based upon the most recent data available.
A new eligible business may apply for a tax credit once at any time during its first year of
operation. A new eligible business in a qualified area that has at least 10 qualified employees on
the date of application may receive a $1,000 tax credit for each such employee. 17
12
“Predominantly” means that more than 50 percent of the business’s gross receipts from all sources is generated by those
activities usually provided for consideration by firms in the specified standard industrial classification. Section 212.098(1)(a),
F.S.
13
Section 212.098(1)(a), F.S. The Standard Industrial Classification (SIC) was replaced by the North American Industry
Classification System (NAICS) in 1997. NAICS is the standard used by federal statistical agencies in classifying business
establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
See U.S. Census Bureau, North American Industry Classification System, available at https://www.census.gov/naics/ (last
visited Nov. 29, 2021).
14
See s. 288.106, F.S.
15
Section 212.098(1)(c), F.S.
16
Id.
17
Section 212.098(2), F.S.
BILL: SB 800 Page 4
An existing eligible business may apply for a tax credit at any time it is entitled to such credit.
An existing eligible business with fewer than 50 employees in a qualified area that on the date of
application has at least 20 percent more qualified employees than it had one year prior to its date
of application may receive a $1,000 tax credit for each such additional employee. An existing
eligible business that has more than 50 employees in a qualified area that, on the date of
application, has at least 10 more qualified employees than it had one year prior to its date of
application may receive a $1,000 tax credit for each additional employee. An existing eligible
business that received a tax credit when it was a new eligible business must wait 12 months
before it can apply for a tax credit as an existing eligible business.18
For any new or existing eligible business receiving a tax credit, an additional $500 credit must be
provided for any qualified employee who is a welfare transition program participant. The
employee must be employed on the application date and have been employed less than one year.
This credit is in addition to other credits under the rural job tax credit.19
The maximum credit amount that may be approved during any calendar year is $5 million. The
Department of Revenue (DOR), in conjunction with the DEO, must notify the governing bodies
in areas designated as qualified counties when the $5 million maximum amount has been
reached. Applications must be considered for approval in the order in which they are received
without regard to whether the tax credit is for a new or existing business.20 A business may not
receive more than $500,000 of tax credits during any one calendar year.21
Florida Job Growth Grant Fund
The Florida Job Growth Grant Fund (fund) was created in 201722 to promote economic
opportunity by improving public infrastructure and enhancing workforce training.23 The fund is
housed within the DEO and may not be used for the exclusive benefit of any single company,
corporation, or business entity.24
The DEO and Enterprise Florida, Inc., a nonprofit corporation acting as the state’s economic
development organization, may identify projects, solicit proposals, and make funding
recommendations to the Governor.25 The Governor is authorized to approve:26
State or local public infrastructure projects27 to promote economic recovery in specific
regions of the state, economic diversification, or economic enhancement in a targeted
industry;
18
Section 212.098(3), F.S.
19
Section 212.098(4), F.S.
20
Section 212.098(6)(c), F.S.
21
Section 212.098(6)(d), F.S.
22
Chapter 2017-233, s. 15, Laws of Fla.
23
Section 288.101(1), F.S.
24
Id.
25
Section 288.101(2), F.S.
26
Section 288.101(2)(a)-(c), F.S.
27
Section 288.101(3)(b), F.S., defines “public infrastructure” as infrastructure that is owned by the public, and is for public
use or predominantly benefits the public.
BILL: SB 800 Page 5
Infrastructure28 funding to accelerate the rehabilitation of the Herbert Hoover Dike; and
Workforce training grants to support programs at state colleges and state technical centers
that provide participants with transferable, sustainable workforce skills applicable to more
than a single employer, and for equipment associated with these programs.
During the 2020-2021 fiscal year the fund was appropriated $50 million,29 and four infrastructure
projects and one workforce training project were approved.30
Qualified Target Industry Tax Refund Program
The Qualified Target Industry (QTI) Tax Refund Program was created to encourage the creation
and retention of high-quality, high-wage jobs by providing state tax refunds to eligible
businesses creating jobs in certain target industries.31 Tax refunds awarded through the program
are determined by the number of jobs created, the average wages paid, and the location of the
eligible business. The program expired on June 30, 2020; however, existing QTI agreements will
continue to be in effect according to their terms.32 For Fiscal Year 2021-2022, $20.5 million was
appropriated, in part, to the QTI program.33
Florida Enterprise Zone Program
The Florida Enterprise Zone Program offered a variety of sales tax credits, refunds, exemptions,
and corporate income tax credits to businesses within certain geographic regions to encourage
economic growth and investment in distressed areas.
State incentives included a sales tax refund for building materials used in the rehabilitation of
real property in an enterprise zone. The amount of the refund was the lesser of 97 percent of the
sales taxes paid or $5,000, or, if 20 percent or more of the business’s employees reside in an
enterprise zone, the lesser of 97 percent of the sales taxes paid or $10,000.34
Local incentives included a municipal public service tax exemption for qualified businesses
located in an enterprise zone on the purchase of electrical energy. The exemption was only
available if the municipality in which the business was located had passed an ordinance to
exempt the municipal utility taxes on such business.35
The program was administered by the DEO and sunset on December 31, 2015.
28
Section 288.101(3)(a), F.S., defines “infrastructure” as any fixed capital expenditure or fixed capital costs associated with
the construction, reconstruction, or improvement of facilities that have a life expectancy of five or more years and any land
acquisition, land improvement, design, and engineering costs related to it.
29
Chapter 2021-36, s. 152, Laws of Fla.
30
Department of Economic Opportunity, Florida Job Growth Grant Fund Awarded Proposals, 2020-2021,
http://www.floridajobs.org/jobgrowth/2017-18-awarded-proposals (last visited Nov. 29, 2021).
31
Section 288.106(1), F.S.
32
Section 288.106(9), F.S.
33
Chapter 2021-36, Specific Appropriation 2244, s. 6, Laws of Fla.
34
Section 212.08(5)(g), F.S.
35
Sections 212.08(15) and 166.231(8), F.S.
BILL: SB 800 Page 6
Opportunity Zone Program
The Opportunity Zone Program was created by the Federal Tax Cuts and Jobs Act of 2017 36 to
encourage economic development and job creation in economically distressed communities by
providing tax incentives for investors who invest new capital in businesses operating in one or
more qualified opportunity zones (zones).37 Areas qualify as zones if they have been nominated
by a state, a U.S. territory, or the District of Columbia, and the nomination has been certified by
the United States Department of the Treasury (U.S. Treasury).38 Governors can nominate up to
25 percent of their state’s eligible tracts to receive the designation.39
Investments are made in the zones through U.S. Treasury Qualified Opportunity Zone Funds and
must invest over 90 percent of their assets in qualified zone properties and businesses. Zone
funds attract investors through potential tax benefits. These tax benefits can accrue once
unrealized capital gains from other investments are rolled in Qualified Opportunity Zone Funds.
Benefits include the following:40
Taxes are deferred on capital gains rolled into Qualified Opportunity Zone Funds and the
original tax bill through December 31, 2026, or the sale of the zone investment, whichever is
earlier;
Taxes are reduced on capital gains held in Qualified Opportunity Zone Funds for certain
lengths of time, for investments held for 5 years, the cost basis for tax purposes is increased
by 10 percent and for investments held for 7 years, the cost basis increases an additional 5
percent; and
The rolled over capital gain appreciates tax-free if the investment in the Qualified
Opportunity Zone is held for 10 years or longer.
Currently, Florida has 427 designated zones that are located in every county. 41
III. Effect of Proposed Changes:
Rural Opportunity Tax Refund Program (section 5)
The bill largely replicates, with minor changes, the QTI Tax Refund Program, and limits the
program benefits to rural areas. The bill creates s. 288.066, F.S., creating the Rural Opportunity
Tax Refund Program to encourage the creation and retention of stable, high-quality jobs by
providing state tax refunds to eligible businesses in certain target industries located in rural areas.
36
Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97, § 13823, 131 stat. 2054.
37
Internal Revenue Service, Opportunity Zones Frequently Asked Question, available at https://www.irs.gov/credits-
deductions/opportunity-zones-frequently-asked-questions#general (last visited Nov. 29, 2021).
38
Id.
39
Florida Department of Economic Opportunity, The Opportunity Zone Program, available at
https://floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resource/opportunity-
zones (last visited Nov. 29, 2021).
40
Id.
41
Id.
BILL: SB 800 Page 7
Definitions
The bill defines a “rural city” as having a population of 10,000 or less, or a city having less than
20,000 if a significant percentage of the residents are on public assistance or have incomes below
the poverty level, or a significant percentage of the city’s employment base is in agriculture-
related jobs. “Rural communities” means a county with a population of 75,000 or less, a county
with a population of 125,000 or less and is contiguous to a county having a population of 75,000
or less; or the municipality has a significant percentage of residents on public assistance, have
incomes below poverty level, or a significant percentage of the employment base is in
agriculture-related jobs.
The bill defines a “target industry business” as a corporate headquarters business or any business
engaged in certain target industries. The term does not include a business engaged in retail
industry activities; an electric utility company; phosphate or other solid minerals severance,
mining, or procession operation; or a business subject to regulation by the Division of Hotels and
Restaurants of the Department of Business and Professional Regulation. A business in office
administrative services (NAICS code 5611) or business support services (NAICS code 5614)
may be considered a target industry business if Enterprise Florida, Inc., and the local governing
body determines that the community meets certain criteria that affect the fiscal and economic
viability of the local community.
The bill defines “local financial support” as funding from public or private local sources which is
paid to the Economic Development Trust Fund and which is equal to 20 percent of the annual tax
refund for a qualified target industry business. A qualified target industry business may not
provide, either directly or indirectly, more than 5 percent of the funding in any fiscal year.
Sources of the funding may not include, either directly or indirectly, state funds appropriated
from the General Revenue Fund or any state trust fund, excluding tax revenues shared with local
governments. Local sources may be exempt from the local financial support requirement
available to an applicant whose project is located in a brownfield, a rural city, or a rural
community. An applicant exercising this exemption is not eligible for more than 80 percent of
the total tax refunds allowed under the program.
The bill also provides definitions for the following terms:42
“Account;”
“Authorized local economic development agency;”
“Average private sector wage in the area;”
“Business;”
“Corporate headquarters business;”
“Expansion of an existing business;”
“Fiscal year;”
“Jobs;”
“New business;”
“Project;”
“Qualified target industry business;” and
“Taxable year.”
42
See s. 288.066(1), F.S. of the bill.
BILL: SB 800 Page 8
Criteria
The DEO and Enterprise, Florida, Inc., must consider the following criteria in identifying target
industries:
Future growth;
Stability;
High Wages;
Market and Resource Independent;
Industrial base diversification and strengthening; and
Positive economic impact.
The bill provides that targeted industries will be determined by January 1 of every third year,
beginning January 1, 2023, in consultation with the DEO, in consultation with Enterprise,
Florida, Inc., economic development organizations, the State University System, local
governments, employee and employer organizations, market analysts, and economists. The list
must be submitted to the Governor, the President of the Senate, and the Speaker of the House of
Representatives.
Tax Refunds
Qualified target industry businesses are eligible to receive a tax refund equal to $6,000 per
created job. Tax refunds may be claimed for one or more of the following taxes paid:
Sales and use tax;
Corporate income taxes;
Insurance premium taxes;
Intangible personal property taxes;
Ad valorem taxes;
Certain state communication services taxes; and
Excise taxes on documents.
A qualified target industry business may not receive a refund for any amount of credit, refund, or
exemption previously granted to that business for any of the aforementioned taxes. If the DEO
provides for a refund and the taxes are adjusted by the application of any credit, refund, or
exemption granted to the qualified target industry business, the business must reimburse the
account for the amount of that credit, refund, or exemption and notify and tender the payment to
the DEO within 20 days after receiving the credit, refund, or exemption. Refunds may not be
spent on the relocation of a business from one community to another unless the DEO determines
that, without the relocation, the business will move out of Florida, or determines the business has
a compelling economic rationale for relocation and thus, result in the creation of additional jobs.
A qualified target industry business that fraudulently claims a refund is:
Liable for repayment of the amount of the refund to the account, plus a mandatory 200
percent of the tax refund, which will be deposited into the General Revenue; and
Commits a third degree felony.43
43
A third degree felony is generally punishable by up to five years in state prison and a fine not exceeding $5,000. Sections
775.082, 775.083, and 775.084, F.S.
BILL: SB 800 Page 9
Application and Approval Process
A business must file an application to become a qualified target industry business with the DEO
before the business moves to the state or before the business expands its existing operations in
the state. The application must include:
Certain identifying information;
A description of the type of business activity covered by the project;
The proposed number of net new full-time Florida jobs, including average wages;
The total number of full-time equivalent employees employed by the applicant in the state;
The anticipated commencement date of the project;
A description of the role the estimated tax refunds to be requested would play in the decision
of the applicant locating to the state or expanding in the state;
An estimate of the proportion of sales resulting from the project that will be made outside the
state;
An estimate of the proportion of the cost of the equipment to be used by the business in the
state operations that will be purchased outside the state;
A resolution adopted by the governing board of the local government in which the project
will be located recommending the applicant be approved; and
Any additional information requested by the DEO.
Additionally, the DEO must review and evaluate each target industry business application based
on, but not limited to, the following criteria:
Expected contributions to the state’s economy, consistent with the state strategic economic
development plan prepared by the DEO;
The economic benefits of the proposed award of tax refunds;
The amount of capital investment to be made in the state by the applicant;
The local financial commitment and support for the project;
The expected effect of the project on the unemployed and underemployed in the county
where the project will be located;
The expected effect of the award on the viability of the project and the probability that the
project would be undertaken in this state if the tax refunds are granted to the applicant;
Whether the business activity or project is in an industry identified by the DEO as a target
industry business that contributes to the economic growth of the state and the area where the
business is located, produces a higher standard of living for residents, or can be shown to
make an equivalent contribution to the area’s and state’s economic progress; and
A review of the business’s past activities in this state or other states, including whether the
business has been subjected to criminal or civil fines and penalties.
When reviewing the application, the DEO must include projections of the tax refunds the
business would be eligible to receive in each fiscal year based on the creation and maintenance
of net new Florida jobs.
The DEO may not provide a certification if the value of the tax refunds exceeds the available
amount of authority to certify new businesses pursuant to the Economic Development Trust
Fund. If local financial support is less than 20 percent of the approved tax refund, then the refund
BILL: SB 800 Page 10
must be reduced. Projects located in a brownfield area, rural city, or rural community may
exercise an option of local financial support exemption; however, the applicant will then receive
no more than 80 percent of the total tax refund allowed.
The letter of certification from the DEO approving an application must specify the maximum
amount of tax refund that will be available to the qualified target industry business in each fiscal
year, as well as the total amount of tax refunds available to the business for all fiscal years.
The bill authorizes the DEO to issue nonbinding opinion letters to prospective applicants on the
applicant’s eligibility and the potential refund amounts the applicant may receive.
Annual Claim for Refund
To claim a scheduled tax refund, a qualified target industry business must apply to the DEO by
January 31 of each year. The DEO may grant a 30-day extension to the filing date if the request
is made in writing. The business’s claim for the refund must include a copy of all receipts
pertaining to the payment of taxes for the refund being sought.
The DEO is authorized to waive the requirement for proof of taxes paid in future years for a
qualified target industry business that provides the DEO with proof that, in a single year, the
business has paid an amount of certain state taxes which is at least equal to the total amount of
tax refunds that the business may receive through completion of its project.
A tax refund will be denied unless the required local financial support has been paid into the
account for that refund. Additionally, if the local financial support provided is less than 20
percent of the approved tax refund, then the tax refund must be reduced. The tax refund may not
exceed an amount equal to five times the amount of the local financial support received. The
qualified target industry business must provide a report listing all sources of the local financial
support to the DEO when the support is paid to the account.
The DEO, with assistance from the DOR if necessary, must provide written approval or
disapproval of the tax refund claim by June 30 following the scheduled date for submission of
the tax refund claim. If approved, the DEO must also provide the amount of the tax refund
authorized to be paid to the qualified target industry business. An extension may be granted by
the DEO upon the request of the business in order to provide additional information in support of
the claim. The total amount of tax refund claims approved by the DEO in any fiscal year may not
exceed the amount authorized pursuant to the Economic Development Trust Fund.
After approval of the tax refund, the Chief Financial Officer must issue a warrant for the amount
specified in the written order. If the order is appealed, Chief Financial Officer may not issue a
refund until the conclusion of all appeals of that order.
Administration by the DEO
For any claim submitted for tax credits, the DEO is authorized to verify information with regard
to employment and wage levels or the payment of the taxes to the appropriate agency or
authority, including the DOR or any local government or authority.
BILL: SB 800 Page 11
The DEO may provide a list of qualified target industry businesses to the DOR or to any local
government authority to help monitor and audit applications. The DEO may also request the
assistance of those entities to monitor jobs, wages, and the payment of taxes.
Any funds specifically appropriated for tax refunds for qualified target industry businesses may
not be used by the DEO for any purpose other than the payment of tax refunds.
Municipality Public Service Tax (section 1)
The bill amends s. 166.231, F.S., authorizing municipalities to exempt the public service tax on
purchasers of electrical energy who the DOR determines are eligible, beginning July 1, 2023, as
a qualified business in an opportunity zone. This exemption is only available if the municipality
in which the business is located has passed an ordinance to exempt the municipal public service
taxes on such business. The municipality must provide a copy of the ordinance to the DOR not
less than 14 days before its effective date.
This provision mirrors a provision in the Enterprise Zone Program, an expired program under
ch. 290, F.S.
Definitions (section 2)
The bill amends s. 212.02, F.S., defining the term “opportunity zone” as a population census
tract designated by the U.S. Treasury as a qualified opportunity zone pursuant to s. 1400Z-
1(b)(1)(B) of the Internal Revenue Code.
Sales Tax Exemptions (section 3)
The bill amends s. 212.08, F.S., exempting building materials used in the rehabilitation of real
property44 located in an opportunity zone from the state sales tax. To receive a refund, the owner,
lessee, or lessor of the rehabilitated real property must file an application, including a sworn
statement from the general contractor whom the applicant contracted to make the improvements
on the property, with the governing body having jurisdiction over the opportunity zone where the
property is located.
The applicant must also forward the application to the DOR within six months after the
rehabilitation of the real property is deemed to be substantially completed by the local building
code inspector, or by November 1 after the property is first subject to assessment.
Only one exemption through a refund of previously paid taxes for the rehabilitation of real
property is allowed for any single parcel unless there is a change in ownership, a new lessor, or a
new lessee of the real property. A refund may not be granted unless the amount exceeds $500
and does not exceed the lesser of 97 percent of the state sales or use tax paid on the cost of the
building materials used or $7,500. A refund must be issued within 30 days after formal approval.
44
Real property means land, buildings, fixtures, and all other improvements to land. The term does not include a
condominium parcel or condominium property.
BILL: SB 800 Page 12
The DOR must adopt rules governing the manner and form of refund application and is
authorized to establish guidelines in determining an affirmative showing of qualification for an
exemption.
This provision mirrors a provision in the Enterprise Zone Program, an expired program under ch.
290, F.S.
The bill creates, beginning July 1, 2023, a 50 percent sales tax exemption on the purchase of
electrical energy to qualified businesses located in an opportunity zone in a municipality that has
enacted an ordinance for a municipal utility tax exemption. The exemption is limited to five
years.
An application containing certain requirements must be submitted to the DOR within six months
after qualifying for the exemption. For purposes of the exemption, a “qualified business” means
a business that is:
First occupying a new structure where electrical service, other than for construction purposes,
has not been previously provided or furnished;
Newly occupying an existing, remodeled, renovated, or rehabilitated structure where
electrical service, other than being used for remodeling, renovation, or rehabilitation of the
structure, has not been provided or furnished in the three preceding billing periods; or
Occupying a new, remodeled, rebuilt, renovated, or rehabilitated structure for which a refund
has been granted for building materials used in the rehabilitation of property located in an
opportunity zone.
If the DOR determines that the business did not meet the above criteria, the 50 percent tax sales
tax exemption must be paid back to the DOR, together with the appropriate interest and penalty
computed from the due date of each bill for the electrical energy purchased as exempt.
The DOR must adopt rules governing applications and the required forms for, and issuance of,
the authorized exemption, and the DOR is authorized to establish guidelines for qualifications for
the exemption.
Rural Job Tax Credit Program (section 4)
The bill amends s. 212.098, F.S., removing the requirement that newly eligible businesses have a
minimum of 10 qualified employees on the date of application in order to receive a tax credit
under the Rural Job Tax Credit Program. Additionally, the bill increases the tax credit from
$1,000 to $2,500 for each employee.
For existing eligible businesses with fewer than 50 employees on the date of application, the bill
provides the business increase the number of employees from the previous year by a minimum of
10 percent, rather than 20 percent. Additionally, the bill increases the tax credit from $1,000 to
$2,000 for each additional employee.
For existing eligible businesses with over 50 employees on the date of application, the bill
provides the business increase the number of employees by five, rather than 10 employees.
BILL: SB 800 Page 13
Additionally, the bill increases the tax credit from $1,000 to $1,500 for each additional
employee.
Economic Development Trust Fund (section 6)
The bill amends s. 288.095, F.S., making conforming changes.
Florida Job Growth Grant Fund (section 7)
The bill amends s. 288.101, F.S., requiring the DEO to allocate an amount equal to 10 percent of
the funds in the Florida Job Growth Grant Fund to projects within rural areas of opportunity for
the first quarter of each fiscal year.
Effective Date (section 8)
The bill takes effect July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The bill authorizes municipalities to exempt by ordinance the public service tax that
certain users would pay on electrical energy purchases.
The bill decreases taxes by providing a 50 percent sales tax exemption on the purchase of
electrical energy to qualified businesses located in an opportunity zone.
BILL: SB 800 Page 14
The bill also increases the rural job tax credit and provides a tax refund of $6,000 per job
created under the rural opportunity tax refund program.
B. Private Sector Impact:
Electrical energy purchasers; owners, lessees, or lessors of real property who use building
materials to rehabilitate property in an opportunity zone; and qualified target industry
businesses in opportunity zones will realize savings through various tax refunds or
exemptions.
C. Government Sector Impact:
The bill has an indeterminate negative fiscal impact on the DEO’s requirements,
procedures and limitations for annual refund claims. The DEO would also be required to
review applications, issue opinion letters and administer the rural opportunity tax refund
program.
The bill requires the DEO to allocate an amount equal to 10 percent of the funds in the
Florida Job Growth Grant Fund to projects within rural areas of opportunity for the first
quarter of each fiscal year.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 166.231, 212.02, 212.08, 212.098, 288.095, and 288.101
of the Florida Statutes:
This bill creates section 288.066 of the Florida Statutes:
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 SB 800 Florida Senate - 2022 SB 800
By Senator Albritton
26-00637-22 2022800__ 26-00637-22 2022800__
1 A bill to be entitled 30 industry businesses in rural areas; defining terms;
2 An act relating to economic development; amending s. 31 specifying the criteria the Department of Economic
3 166.231, F.S.; authorizing municipalities to exempt by 32 Opportunity and Enterprise Florida, Inc., must
4 ordinance the public service tax that specified users 33 consider in identifying target industries; authorizing
5 would pay on electrical energy purchases; requiring 34 the grant of certain tax refunds under certain
6 municipalities to provide copies of such ordinances to 35 circumstances; specifying limitations on refunds;
7 the Department of Revenue within a certain timeframe; 36 providing administrative and criminal penalties;
8 amending s. 212.02, F.S.; defining the term 37 specifying requirements and procedures for
9 “opportunity zone”; amending s. 212.08, F.S.; defining 38 applications; specifying requirements and limitations
10 terms; providing an exemption from the state tax on 39 for the review of applications by the Department of
11 sales, use, and other transactions for building 40 Economic Opportunity; providing construction;
12 materials used in the rehabilitation of real property 41 authorizing the Department of Economic Opportunity to
13 in an opportunity zone; specifying requirements, 42 issue certain opinion letters; providing requirements,
14 limitations, and procedures for the exemption; 43 procedures, and limitations for annual refund claims;
15 requiring the department to adopt rules; authorizing 44 providing requirements for the Chief Financial Officer
16 the department to establish guidelines; providing an 45 for the issuance of warrants for refunds; providing
17 exemption from the state tax on sales, use, and other 46 for administration by the Department of Economic
18 transactions for electrical energy used in an 47 Opportunity; amending s. 288.095, F.S.; conforming
19 opportunity zone, subject to certain ordinances 48 provisions to changes made by the act; amending s.
20 adopted by municipalities; specifying requirements, 49 288.101, F.S.; requiring the Department of Economic
21 limitations, and procedures for the exemption; 50 Opportunity to allocate a specified amount of funds in
22 providing a penalty; requiring the department to adopt 51 the Florida Job Growth Grant Fund during a certain
23 rules; authorizing the department to establish 52 timeframe each year for projects within rural areas of
24 guidelines; defining the term “qualified business”; 53 opportunity; defining the term “rural area of
25 amending s. 212.098, F.S.; revising the qualification 54 opportunity”; providing an effective date.
26 criteria and tax credit amounts for new and existing 55
27 businesses under the Rural Job Tax Credit Program; 56 Be It Enacted by the Legislature of the State of Florida:
28 creating s. 288.066, F.S.; establishing a rural 57
29 opportunity tax refund program for qualified target 58 Section 1. Present subsections (9) and (10) of section
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59 166.231, Florida Statutes, are redesignated as subsections (10) 88 are hereby specifically exempt from the tax imposed by this
60 and (11), respectively, and a new subsection (9) is added to 89 chapter.
61 that section, to read: 90 (5) EXEMPTIONS; ACCOUNT OF USE.—
62 166.231 Municipalities; public service tax.— 91 (v) Building materials used in the rehabilitation of real
63 (9) Beginning July 1, 2023, a municipality may by ordinance 92 property located in an opportunity zone.—
64 exempt not less than 100 percent of the tax imposed under this 93 1. For the purposes of the exemption provided in this
65 section on purchasers of electrical energy who the Department of 94 paragraph, the term:
66 Revenue determines are eligible for the exemption provided by s. 95 a. “Building materials” means tangible personal property
67 212.08(19). The exemption shall be administered as provided in 96 that becomes a component part of improvements to real property.
68 that section. The municipality shall provide a copy of any 97 b. “Real property” has the same meaning as provided in s.
69 ordinance adopted pursuant to this subsection to the Department 98 192.001(12), except that the term does not include a condominium
70 of Revenue not less than 14 days before its effective date. 99 parcel or condominium property as defined in s. 718.103.
71 Section 2. Subsection (35) is added to section 212.02, 100 c. “Rehabilitation of real property” means the
72 Florida Statutes, to read: 101 reconstruction, renovation, restoration, rehabilitation,
73 212.02 Definitions.—The following terms and phrases when 102 construction, or expansion of improvements to real property.
74 used in this chapter have the meanings ascribed to them in this 103 d. “Substantially completed” has the same meaning as
75 section, except where the context clearly indicates a different 104 provided in s. 192.042(1).
76 meaning: 105 2. Building materials used in the rehabilitation of real
77 (35) “Opportunity zone” means a population census tract 106 property are exempt from the tax imposed by this chapter upon an
78 designated by the United States Department of the Treasury as a 107 affirmative showing to the satisfaction of the department that
79 qualified opportunity zone pursuant to s. 1400Z-1(b)(1)(B) of 108 the items have been used for the rehabilitation of real property
80 the Internal Revenue Code. 109 located in an opportunity zone. This exemption inures to the
81 Section 3. Paragraph (v) is added to subsection (5) of 110 owner, lessee, or lessor at the time the real property is
82 section 212.08, Florida Statutes, and subsection (19) is added 111 rehabilitated, but only through a refund of previously paid
83 to that section, to read: 112 taxes. To receive a refund pursuant to this paragraph, the
84 212.08 Sales, rental, use, consumption, distribution, and 113 owner, lessee, or lessor of the rehabilitated real property must
85 storage tax; specified exemptions.—The sale at retail, the 114 file an application under oath with the governing body having
86 rental, the use, the consumption, the distribution, and the 115 jurisdiction over the opportunity zone where the property is
87 storage to be used or consumed in this state of the following 116 located, as applicable. A single application for a refund may be
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117 submitted for multiple, contiguous parcels that were part of a 146 taxes are documented by a general contractor or by the applicant
118 single parcel divided as part of the rehabilitation of the real 147 in this manner, the cost of the building materials is deemed to
119 property. All other requirements of this paragraph apply to each 148 be an amount equal to 40 percent of the increase in assessed
120 parcel on an individual basis. The application must include all 149 value for ad valorem tax purposes.
121 of the following: 150 f. The census tract number of the opportunity zone in which
122 a. The name and address of the person claiming the refund. 151 the rehabilitated real property is located.
123 b. An address and assessment roll parcel number of the 152 g. A certification by the local building code inspector
124 rehabilitated real property for which a refund of previously 153 that the improvements necessary to rehabilitate the real
125 paid taxes is being sought. 154 property are substantially completed.
126 c. A description of the improvements made to accomplish the 155 3. Within 10 working days after receipt of an application,
127 rehabilitation of the real property. 156 the governing body shall review the application to determine if
128 d. A copy of a valid building permit issued by the county 157 it contains all the information required by subparagraph 1. and
129 or municipal building department for the rehabilitation of the 158 meets the criteria set forth in this paragraph. The governing
130 real property. 159 body shall certify all applications that contain the required
131 e. A sworn statement, under penalty of perjury, from the 160 information and are eligible to receive a refund. The
132 general contractor licensed in this state with whom the 161 certification must be in writing, and a copy of the
133 applicant contracted to make the improvements necessary to 162 certification shall be transmitted to the executive director of
134 rehabilitate the real property. The sworn statement must list 163 the department. The applicant is responsible for forwarding a
135 the building materials used to rehabilitate the real property, 164 certified application to the department within the time
136 the actual cost of the building materials, and the amount of 165 specified in subparagraph 4.
137 sales tax paid in this state on the building materials. If a 166 4. An application for a refund must be submitted to the
138 general contractor was not used, the applicant, not a general 167 department within 6 months after the rehabilitation of the real
139 contractor, shall make the sworn statement required by this sub- 168 property is deemed to be substantially completed by the local
140 subparagraph. Copies of the invoices that show the purchase of 169 building code inspector or by November 1 after the rehabilitated
141 the building materials used in the rehabilitation and the 170 real property is first subject to assessment.
142 payment of sales tax on the building materials must be attached 171 5. Only one exemption through a refund of previously paid
143 to the sworn statement provided by the general contractor or by 172 taxes for the rehabilitation of real property is allowed for any
144 the applicant. Unless the actual cost of building materials used 173 single parcel of real property unless there is a change in
145 in the rehabilitation of real property and the payment of sales 174 ownership, a new lessor, or a new lessee of the real property. A
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175 refund may not be granted unless the amount to be refunded 204 the business is located.
176 exceeds $500. A refund may not exceed the lesser of 97 percent 205 3. The date on which electrical service is to be first
177 of the Florida sales or use tax paid on the cost of the building 206 initiated at the business.
178 materials used in the rehabilitation of the real property, as 207 4. The name and mailing address of the entity from which
179 determined pursuant to sub-subparagraph 1.e., or $7,500. The 208 electrical energy is to be purchased.
180 department shall make the refund within 30 days after formally 209 5. The date of the application.
181 approving the application. 210 6. The name of the city in which the business is located.
182 6. The department shall adopt rules governing the manner 211 (c) An application for an exemption under this subsection
183 and form of refund applications and may establish guidelines as 212 must be submitted to the department within 6 months after the
184 to the requisites for an affirmative showing of qualification 213 occurrence of the appropriate qualifying provision set out in
185 for exemption under this paragraph. 214 paragraph (f).
186 (19) ELECTRICAL ENERGY USED IN AN OPPORTUNITY ZONE.— 215 (d) If, in a subsequent audit conducted by the department,
187 (a) Beginning July 1, 2023, a qualified business that uses 216 it is determined that the business did not meet the criteria
188 electrical energy at a fixed location in an opportunity zone in 217 mandated in this subsection, the amount of taxes exempted shall
189 a municipality that has enacted an ordinance pursuant to s. 218 immediately be due and payable to the department by the
190 166.231(9) which provides for exemption of municipal utility 219 business, together with the appropriate interest and penalty,
191 taxes on such businesses shall receive an exemption equal to 50 220 computed from the due date of each bill for the electrical
192 percent of the tax imposed by this chapter. A qualified business 221 energy purchased as exempt under this subsection, in the manner
193 may receive such exemption for a period of 5 years from the 222 prescribed by this chapter.
194 billing period beginning not more than 30 days following the 223 (e) The department shall adopt rules governing applications
195 department notifying the applicable utility company that an 224 and the required forms for, and issuance of, the exemption
196 exemption has been authorized pursuant to this subsection and s. 225 authorized in this subsection and provisions for recapture of
197 166.231(9). 226 taxes exempted under this subsection, and the department may
198 (b) To receive this exemption, a business must file an 227 establish guidelines as to qualifications for the exemption.
199 application with the department on a form provided for the 228 (f) For the purpose of the exemption provided in this
200 purposes of this subsection and s. 166.231(9). The application 229 subsection, the term “qualified business” means a business that
201 must be made under oath and include all of the following: 230 is:
202 1. The name and location of the business. 231 1. First occupying a new structure to which electrical
203 2. The census tract number of the opportunity zone in which 232 service, other than that used for construction purposes, has not
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233 been previously provided or furnished; 262 Any existing eligible business that received a credit under
234 2. Newly occupying an existing, remodeled, renovated, or 263 subsection (2) may not apply for the credit under this
235 rehabilitated structure to which electrical service, other than 264 subsection sooner than 12 months after the application date for
236 that used for remodeling, renovation, or rehabilitation of the 265 the credit under subsection (2).
237 structure, has not been provided or furnished in the three 266 Section 5. Section 288.066, Florida Statutes, is created to
238 preceding billing periods; or 267 read:
239 3. Occupying a new, remodeled, rebuilt, renovated, or 268 288.066 Rural opportunity tax refund program.—
240 rehabilitated structure for which a refund has been granted 269 (1) DEFINITIONS.—As used in this section:
241 pursuant to paragraph (5)(v). 270 (a) “Account” means the Economic Development Incentives
242 Section 4. Subsections (2) and (3) of section 212.098, 271 Account within the Economic Development Trust Fund established
243 Florida Statutes, are amended to read: 272 under s. 288.095.
244 212.098 Rural Job Tax Credit Program.— 273 (b) “Authorized local economic development agency” means a
245 (2) A new eligible business may apply for a tax credit 274 public or private entity, including an entity defined in s.
246 under this subsection once at any time during its first year of 275 288.075, authorized by a county or municipality to promote the
247 operation. A new eligible business in a qualified area that has 276 general business or industrial interests of that county or
248 at least 10 qualified employees on the date of application shall 277 municipality.
249 receive a $2,500 $1,000 tax credit for each such employee. 278 (c) “Average private sector wage in the area” means the
250 (3) An existing eligible business may apply for a tax 279 statewide private sector average wage or the average of all
251 credit under this subsection at any time it is entitled to such 280 private sector wages and salaries in the county or in the
252 credit, except as restricted by this subsection. An existing 281 standard metropolitan area in which the business is located.
253 eligible business with fewer than 50 employees in a qualified 282 (d) “Business” means an employing unit, as defined in s.
254 area that on the date of application has at least 10 20 percent 283 443.036, registered for reemployment assistance purposes with
255 more qualified employees than it had 1 year before prior to its 284 the state agency providing reemployment assistance tax
256 date of application shall receive a $2,000 $1,000 tax credit for 285 collection services under an interagency agreement pursuant to
257 each such additional employee. An existing eligible business 286 s. 443.1316, or a subcategory or division of an employing unit
258 that has 50 employees or more in a qualified area that, on the 287 accepted by the state agency providing reemployment assistance
259 date of application, has at least 5 10 more qualified employees 288 tax collection services as a reporting unit.
260 than it had 1 year before prior to its date of application shall 289 (e) “Corporate headquarters business” means an
261 receive a $1,500 $1,000 tax credit for each additional employee. 290 international, national, or regional headquarters office of a
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291 multinational or multistate business enterprise or national 320 requirement available to any applicant whose project is located
292 trade association, whether separate from or connected with other 321 in a brownfield area, a rural city, or a rural community. Any
293 facilities used by such business. 322 applicant that exercises this option is not eligible for more
294 (f) “Expansion of an existing business” means the expansion 323 than 80 percent of the total tax refunds allowed such applicant
295 of an existing Florida business by or through additions to real 324 under this section.
296 and personal property, resulting in a net increase in 325 (k) “New business” means a business that applies for a tax
297 employment. 326 refund under this section before beginning operations in this
298 (g) “Fiscal year” means the fiscal year of the state. 327 state and that is a legal entity separate from any other
299 (h) “Jobs” means full-time equivalent positions, including, 328 commercial or industrial operations owned by the same business.
300 but not limited to, positions obtained from a temporary 329 (l) “Project” means the creation of a new business or
301 employment agency or employee leasing company or through a union 330 expansion of an existing business.
302 agreement or coemployment under a professional employer 331 (m) “Qualified target industry business” means a target
303 organization agreement, that result directly from a project in 332 industry business approved by the department to be eligible for
304 this state. The term does not include temporary construction 333 tax refunds under this section.
305 jobs involved with the construction of facilities for the 334 (n) “Rural city” means a city having a population of 10,000
306 project or any jobs previously included in any application for 335 or less, or a city having a population of greater than 10,000
307 tax refunds under s. 288.1045 or this section. 336 but less than 20,000, which has been determined by the
308 (i) “Local financial support” means funding from local 337 department to have such economic characteristics as, but not
309 sources, public or private, which is paid to the Economic 338 limited to, a significant percentage of residents on public
310 Development Trust Fund and which is equal to 20 percent of the 339 assistance, a significant percentage of residents with incomes
311 annual tax refund for a qualified target industry business. A 340 below the poverty level, or a significant percentage of the
312 qualified target industry business may not provide, directly or 341 city’s employment base in agriculture-related jobs.
313 indirectly, more than 5 percent of such funding in any fiscal 342 (o) “Rural community” means:
314 year. The sources of such funding may not include, directly or 343 1. A county having a population of 75,000 or less.
315 indirectly, state funds appropriated from the General Revenue 344 2. A county having a population of 125,000 or less which is
316 Fund or any state trust fund, excluding tax revenues shared with 345 contiguous to a county having a population of 75,000 or less.
317 local governments pursuant to law. 346 3. A municipality within a county described in subparagraph
318 (j) “Local financial support exemption option” means the 347 1. or subparagraph 2.
319 option to exercise an exemption from the local financial support 348
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349 For purposes of this paragraph, population shall be determined 378 the Governor, the President of the Senate, and the Speaker of
350 in accordance with the most recent official estimate pursuant to 379 the House of Representatives.
351 s. 186.901. 380 (q) “Taxable year” means taxable year as defined in s.
352 (p) “Target industry business” means a corporate 381 220.03(1)(y).
353 headquarters business or any business engaged in one of the 382 (2) DESIGNATION OF TARGET INDUSTRIES.—In identifying target
354 target industries identified pursuant to subsection (2). The 383 industries, the department in consultation with Enterprise
355 term does not include any business engaged in retail industry 384 Florida, Inc., shall consider the following criteria:
356 activities; any electric utility company as defined in s. 385 (a) Future growth.—Whether industry forecasts indicate
357 366.02(2); any phosphate or other solid minerals severance, 386 strong expectation for future growth in both employment and
358 mining, or processing operation; any oil or gas exploration or 387 output, according to the most recent available data. Special
359 production operation; or any business subject to regulation by 388 consideration must be given to businesses that export goods to,
360 the Division of Hotels and Restaurants of the Department of 389 or provide services in, international markets and to businesses
361 Business and Professional Regulation. Any business in NAICS code 390 that replace international imports of goods or services.
362 5611 or 5614, office administrative services and business 391 (b) Stability.—Special consideration must be given to an
363 support services, respectively, may be considered a target 392 industry not subject to periodic layoffs, whether due to
364 industry business only after the local governing body and 393 seasonality or sensitivity to volatile economic variables, such
365 Enterprise Florida, Inc., determine that the community where the 394 as weather. The industry must also be relatively resistant to
366 business may locate has conditions affecting the fiscal and 395 recession, so that the demand for products of this industry is
367 economic viability of the local community or area, including but 396 not typically subject to decline during an economic downturn.
368 not limited to, such factors as low per capita income, high 397 (c) High wage.—Whether the industry pays relatively high
369 unemployment, high underemployment, and a lack of year-round 398 wages compared to statewide or area averages.
370 stable employment opportunities, and such conditions may be 399 (d) Market and resource independent.—Whether industry
371 improved by the location of such a business to the community. By 400 business locations are not dependent upon Florida markets or
372 January 1 of every 3rd year, beginning January 1, 2023, the 401 resources, as indicated by industry analysis, except for
373 department, in consultation with Enterprise Florida, Inc., 402 businesses in the renewable energy industry.
374 economic development organizations, the State University System, 403 (e) Industrial base diversification and strengthening.—
375 local governments, employee and employer organizations, market 404 Whether the industry is contributing toward expanding or
376 analysts, and economists, shall review and, as appropriate, 405 diversifying the state’s or area’s economic base, as indicated
377 revise the list of such target industries and submit the list to 406 by analysis of the industry’s share of employment and output,
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407 compared to national and regional trends. Special consideration 436 a. Corporate income taxes under chapter 220.
408 must be given to industries that strengthen regional economies 437 b. Insurance premium tax under s. 624.509.
409 by adding value to basic products or building regional 438 2. Receive refunds from the account for the following taxes
410 industrial clusters, as indicated by industry analysis. Special 439 due and paid by that business after being certified as a
411 consideration must also be given to the development of strong 440 qualified target industry business:
412 industrial clusters that include defense and homeland security 441 a. Taxes on sales, use, and other transactions under
413 businesses. 442 chapter 212.
414 (f) Positive economic impact.—Whether the industry is 443 b. Intangible personal property taxes under chapter 199.
415 expected to have strong positive economic impacts on or benefits 444 c. Excise taxes on documents under chapter 201.
416 to the state or regional economies. Special consideration must 445 d. Ad valorem taxes paid, as defined in s. 220.03(1).
417 be given to industries that facilitate the development of the 446 e. State communications services taxes administered under
418 state as a hub for domestic and global trade and logistics. 447 chapter 202. This provision does not apply to the gross receipts
419 (3) TAX REFUND; ELIGIBLE AMOUNTS.— 448 tax imposed under chapter 203 and administered under chapter 202
420 (a) A qualified target industry business may be allowed a 449 or the local communications services tax authorized under s.
421 refund from the account for the amount of eligible taxes the 450 202.19.
422 business paid which is certified by the department. The total 451 (d) A qualified target industry business may not receive a
423 amount of refunds for all fiscal years for each qualified target 452 refund under this section for any amount of credit, refund, or
424 industry business must be determined pursuant to subsection (4). 453 exemption previously granted to that business for any of the
425 The annual amount of a refund to a qualified target industry 454 taxes listed in paragraph (c). If the department provides a
426 business must be determined pursuant to subsection (5). 455 refund for such taxes and the taxes are subsequently adjusted by
427 (b) Upon approval by the department, a qualified target 456 the application of any credit, refund, or exemption granted to
428 industry business located in a rural community is allowed tax 457 the qualified target industry business other than as provided in
429 refund payments equal to $6,000 multiplied by the number of jobs 458 this section, the business must reimburse the account for the
430 the business creates. 459 amount of that credit, refund, or exemption. A qualified target
431 (c) A qualified target industry business may: 460 industry business shall notify and tender payment to the
432 1. Receive refunds from the account for the following taxes 461 department within 20 days after receiving any credit, refund, or
433 due and paid by that business beginning with the first taxable 462 exemption other than one provided under this section.
434 year of the business which begins after the business has been 463 (e) Refunds made available under this section may not be
435 certified as a qualified target industry business: 464 expended in connection with the relocation of a business from
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465 one community to another community in this state unless the 494 Classification System, as published in 2007 by the Office of
466 department determines that, without such relocation, the 495 Management and Budget, Executive Office of the President, and
467 business will move outside this state, or it determines that the 496 updated periodically.
468 business has a compelling economic rationale for relocation and 497 4. The proposed number of net new full-time equivalent
469 that the relocation will create additional jobs. 498 Florida jobs at the qualified target industry business as of
470 (f) A qualified target industry business that fraudulently 499 December 31 of each year included in the project and the average
471 claims a refund under this section: 500 wage of those jobs. If more than one type of business activity
472 1. Is liable for repayment of the amount of the refund to 501 or product is included in the project, the number of jobs and
473 the account, plus a mandatory penalty in the amount of 200 502 average wage for those jobs must be separately stated for each
474 percent of the tax refund. The repayment shall be deposited into 503 type of business activity or product.
475 the General Revenue Fund. 504 5. The total number of full-time equivalent employees
476 2. Commits a felony of the third degree, punishable as 505 employed by the applicant in this state, if applicable.
477 provided in s. 775.082, s. 775.083, or s. 775.084. 506 6. The anticipated commencement date of the project.
478 (4) APPLICATION AND APPROVAL PROCESS.— 507 7. A brief statement explaining the role that the estimated
479 (a) To apply for certification as a qualified target 508 tax refunds to be requested will play in the decision of the
480 industry business under this section, the business must file an 509 applicant to locate or expand in this state.
481 application with the department before the business decides to 510 8. An estimate of the proportion of the sales resulting
482 locate in this state or before the business decides to expand 511 from the project which will be made outside this state.
483 its existing operations in this state. The application must 512 9. An estimate of the proportion of the cost of the
484 include, but need not be limited to, the following information: 513 machinery and equipment, and any other resources necessary in
485 1. The applicant’s federal employer identification number 514 the development of its product or service, to be used by the
486 and, if applicable, state sales tax registration number. 515 business in its Florida operations which will be purchased
487 2. The proposed permanent location of the applicant’s 516 outside this state.
488 facility in this state where the project is to be located. 517 10. A resolution adopted by the governing board of the
489 3. A description of the type of business activity or 518 county or municipality in which the project will be located,
490 product covered by the project, including a minimum of a five- 519 which resolution recommends that the applicant be approved as a
491 digit NAICS code for all activities included in the project. As 520 qualified target industry business and specifies that the
492 used in this paragraph, the term “NAICS” means those 521 commitments of local financial support necessary for the target
493 classifications contained in the North American Industry 522 industry business exist. Before the passage of such resolution,
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523 the department may also accept an official letter from an 552 business that contributes to the economic growth of the state
524 authorized local economic development agency that endorses the 553 and the area in which the business is located, produces a higher
525 proposed target industry project and pledges that sources of 554 standard of living for residents of this state in the new global
526 local financial support for such project exist. For the purposes 555 economy, or can be shown to make an equivalent contribution to
527 of making pledges of local financial support under this 556 the area’s and state’s economic progress.
528 subparagraph, the local governing board shall pass a one-time 557 8. A review of the business’s past activities in this state
529 resolution officially designating the authorized local economic 558 or other states, including whether the business has been
530 development agency. 559 subjected to criminal or civil fines and penalties. This
531 11. Any additional information requested by the department. 560 subparagraph does not require the disclosure of confidential
532 (b) Each application must be submitted to the department 561 information.
533 for determination of eligibility. The department shall review 562 (c) Applications shall be reviewed and certified pursuant
534 and evaluate each application based on, but not limited to, the 563 to s. 288.061. The department shall include in its review
535 following criteria: 564 projections of the tax refunds the business would be eligible to
536 1. Expected contributions to the state’s economy, 565 receive in each fiscal year based on the creation and
537 consistent with the state strategic economic development plan 566 maintenance of the net new Florida jobs specified in
538 prepared by the department. 567 subparagraph (a)4. as of December 31 of the preceding state
539 2. The economic benefits of the proposed award of tax 568 fiscal year.
540 refunds under this section. 569 (d) The department may not certify any target industry
541 3. The amount of capital investment to be made by the 570 business as a qualified target industry business if the value of
542 applicant in this state. 571 tax refunds to be included in that letter of certification
543 4. The local financial commitment and support for the 572 exceeds the available amount of authority to certify new
544 project. 573 businesses as determined in s. 288.095(3). However, if the
545 5. The expected effect of the project on the unemployed and 574 commitments of local financial support represent less than 20
546 underemployed in the county where the project will be located. 575 percent of the eligible tax refund payments, or to otherwise
547 6. The expected effect of the award on the viability of the 576 preserve the viability and fiscal integrity of the program, the
548 project and the probability that the project would be undertaken 577 department may certify a qualified target industry business to
549 in this state if such tax refunds are granted to the applicant. 578 receive tax refund payments of less than the allowable amount
550 7. Whether the business activity or project is in an 579 specified in paragraph (3)(b). A letter of certification that
551 industry identified by the department as a target industry 580 approves an application must specify the maximum amount of tax
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581 refund that will be available to the qualified target industry 610 financial support provided is less than 20 percent of the
582 business in each fiscal year and the total amount of tax refunds 611 approved tax refund, the tax refund must be reduced. The tax
583 that will be available to the business for all fiscal years. 612 refund may not exceed an amount equal to 5 times the amount of
584 (e) This section does not create a presumption that an 613 the local financial support received. The qualified target
585 applicant will receive any tax refunds under this section. 614 industry business must provide a report listing all sources of
586 However, the department may issue nonbinding opinion letters, 615 the local financial support to the department when such support
587 upon the request of prospective applicants, as to the 616 is paid to the account.
588 applicants’ eligibility and the potential amount of refunds. 617 (e) The department, with such assistance as may be required
589 (5) ANNUAL CLAIM FOR REFUND.— 618 from the Department of Revenue, shall, by June 30 following the
590 (a) To be eligible to claim any scheduled tax refund, a 619 scheduled date for submission of the tax refund claim, specify
591 qualified target industry business must apply by January 31 of 620 by written order the approval or disapproval of the tax refund
592 each fiscal year to the department for the tax refund scheduled 621 claim and, if approved, the amount of the tax refund authorized
593 to be paid from the appropriation for the fiscal year that 622 to be paid to the qualified target industry business. The
594 begins on July 1 following the January 31 claims-submission 623 department may grant an extension of this date upon the request
595 date. The department may, upon written request, grant a 30-day 624 of the qualified target industry business for the purpose of
596 extension of the filing date. 625 filing additional information in support of the claim.
597 (b) The claim for refund by the qualified target industry 626 (f) The total amount of tax refund claims approved by the
598 business must include a copy of all receipts pertaining to the 627 department under this section in any fiscal year must not exceed
599 payment of taxes for which the refund is sought. 628 the amount authorized under s. 288.095(3).
600 (c) The department may waive the requirement for proof of 629 (g) This section does not create a presumption that a tax
601 taxes paid in future years for a qualified target industry 630 refund claim will be approved and paid.
602 business that provides the department with proof that, in a 631 (h) Upon approval of the tax refund under paragraphs (d)
603 single year, the business has paid an amount of state taxes from 632 and (e), the Chief Financial Officer shall issue a warrant for
604 the categories in paragraph (3)(c) which is at least equal to 633 the amount specified in the written order. If the written order
605 the total amount of tax refunds that the business may receive 634 is appealed, the Chief Financial Officer may not issue a warrant
606 through successful completion of its project. 635 for a refund to the qualified target industry business until the
607 (d) A tax refund may not be approved for a qualified target 636 conclusion of all appeals of that order.
608 industry business unless the required local financial support 637 (6) ADMINISTRATION.—
609 has been paid into the account for that refund. If the local 638 (a) The department may verify information provided in any
Page 21 of 26 Page 22 of 26
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Florida Senate - 2022 SB 800 Florida Senate - 2022 SB 800
26-00637-22 2022800__ 26-00637-22 2022800__
639 claim submitted for tax credits under this section with regard 668 shall be subject to the provisions of s. 216.301(1)(a).
640 to employment and wage levels or the payment of the taxes to the 669 (3)(a) The department may approve applications for
641 appropriate agency or authority, including the Department of 670 certification pursuant to ss. 288.066, 288.1045(3), and 288.106.
642 Revenue or any local government or authority. 671 However, the total state share of tax refund payments may not
643 (b) To facilitate the process of monitoring and auditing 672 exceed $35 million.
644 applications made under this section, the department may provide 673 (b) The total amount of tax refund claims approved for
645 a list of qualified target industry businesses to the Department 674 payment by the department based on actual project performance
646 of Revenue or to any local government or authority. The 675 may not exceed the amount appropriated to the Economic
647 department may request the assistance of those entities with 676 Development Incentives Account for such purposes for the fiscal
648 respect to monitoring jobs, wages, and the payment of the taxes 677 year. Claims for tax refunds under ss. 288.066, 288.1045, and
649 listed in subsection (3). 678 288.106 shall be paid in the order the claims are approved by
650 (c) Funds specifically appropriated for tax refunds for 679 the department. In the event the Legislature does not
651 qualified target industry businesses under this section may not 680 appropriate an amount sufficient to satisfy the tax refunds
652 be used by the department for any purpose other than the payment 681 under ss. 288.066, 288.1045, and 288.106 in a fiscal year, the
653 of tax refunds authorized by this section. 682 department shall pay the tax refunds from the appropriation for
654 Section 6. Section 288.095, Florida Statutes, is amended to 683 the following fiscal year. By March 1 of each year, the
655 read: 684 department shall notify the legislative appropriations
656 288.095 Economic Development Trust Fund.— 685 committees of the Senate and House of Representatives of any
657 (1) The Economic Development Trust Fund is created within 686 anticipated shortfall in the amount of funds needed to satisfy
658 the Department of Economic Opportunity. Moneys deposited into 687 claims for tax refunds from the appropriation for the current
659 the fund must be used only to support the authorized activities 688 fiscal year.
660 and operations of the department. 689 (c) Moneys in the Economic Development Incentives Account
661 (2) There is created, within the Economic Development Trust 690 may be used only to pay tax refunds and make other payments
662 Fund, the Economic Development Incentives Account. The Economic 691 authorized under s. 288.066, s. 288.1045, s. 288.106, or s.
663 Development Incentives Account consists of moneys appropriated 692 288.107.
664 to the account for purposes of the tax incentives programs 693 (d) The department may adopt rules necessary to carry out
665 authorized under ss. 288.066, 288.1045, and 288.106, and local 694 the provisions of this subsection, including rules providing for
666 financial support provided under ss. 288.066, 288.1045, and 695 the use of moneys in the Economic Development Incentives Account
667 288.106. Moneys in the Economic Development Incentives Account 696 and for the administration of the Economic Development
Page 23 of 26 Page 24 of 26
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Florida Senate - 2022 SB 800 Florida Senate - 2022 SB 800
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697 Incentives Account. 726 accordance with s. 288.106(2)(q).
698 Section 7. Present subsections (3) and (4) of section 727 Section 8. This act shall take effect July 1, 2022.
699 288.101, Florida Statutes, are redesignated as subsections (4)
700 and (5), respectively, a new subsection (3) is added to that
701 section, and present subsection (3) of that section is amended,
702 to read:
703 288.101 Florida Job Growth Grant Fund.—
704 (3) For the first quarter of each fiscal year, the
705 department shall allocate an amount equal to 10 percent of the
706 funds in the Florida Job Growth Grant Fund to projects within
707 rural areas of opportunity.
708 (4)(3) For purposes of this section:
709 (a) “Infrastructure” means any fixed capital expenditure or
710 fixed capital costs associated with the construction,
711 reconstruction, or improvement of facilities that have a life
712 expectancy of 5 or more years and any land acquisition, land
713 improvement, design, and engineering costs related thereto.
714 Facilities in this category include technical structures such as
715 roads, bridges, tunnels, water supply, sewers, electrical grids,
716 and telecommunications facilities.
717 (b) “Public infrastructure” means infrastructure that is
718 owned by the public, and is for public use or predominately
719 benefits the public. If public infrastructure is leased or sold,
720 it must be leased or sold at fair market rates or value.
721 (c) “Rural area of opportunity” has the same meaning as in
722 s. 288.0656(2)(d).
723 (d) “Targeted industry” means any industry identified in
724 the most recent list provided to the Governor, the President of
725 the Senate, and the Speaker of the House of Representatives in
Page 25 of 26 Page 26 of 26
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Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 786
Ì303042hÎ303042
LEGISLATIVE ACTION
Senate . House
Comm: FAV .
01/13/2022 .
.
.
.
The Committee on Finance and Tax (Hutson) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 41 - 42
4 and insert:
5 exempt from the tax imposed by this chapter. As used in this
6 paragraph, the term “aircraft” means a manned vehicle capable of
7 flight which is designed to transport persons or property.
8 “common carrier” means an airline operating under
9
10 ================= T I T L E A M E N D M E N T ================
Page 1 of 2
12/15/2021 10:47:58 AM 593-01791-22
Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 786
Ì303042hÎ303042
11 And the title is amended as follows:
12 Delete line 5
13 and insert:
14 certain aircraft, from the sales and use tax; defining
15 the term “aircraft”; deleting
Page 2 of 2
12/15/2021 10:47:58 AM 593-01791-22
The Florida Senate
Meeting Date
APPEARANCE RECORD 7? 6
Deliver both copies of this form to Bill Number orTopic
Senate professional staff conducting the eeting
Co mittee
Amendment Barcode (if applicable)
Name
7-,
Address
l LS Email ent ,g
Fl 3 - OI
Speaking: Q For Q Against | } Infor ation OR Waive Speaking: In Support Against
PLEASE CHECK ONE OF THE FOLLOWING:
I am appearing without
1 arn a registered lobbyist,
compensation or sponsorship. | I am not a lobbyist, but received
representing:
something of value for m appearance
(travel, eals, lodging, etc.),
sponsored by:
This for is part of the public re ord for this eeting.
S-001 (08/10/2071
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 786
INTRODUCER: Senator Hutson
SUBJECT: Aircraft Sales and Lease Tax
DATE: November 29, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 786 exempts all sales and leases of aircraft from sales and use tax. Currently, Florida exempts
the sale or lease of specific aircraft used by an airline from state tax; all other aircraft are subject
to state sales and use tax of 6 percent and any discretionary local sales and use tax.
The Revenue Estimating Conference estimates that the bill will reduce General Revenue Fund
receipts by $23.3 million dollars in Fiscal Year 2022-2023, with a recurring reduction of $25.4
million.1 The bill will reduce local government revenues by $6.9 million in Fiscal Year 2022-
2023, with a recurring reduction of $7.5 million.
The bill takes effect July 1, 2022.
II. Present Situation:
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,2 admissions,3 transient rentals,4 and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
1
The Revenue Estimating Conference, 2022 Regular Session Revenue Estimating Conference: Impact Conference Results, p.
45-46 (Nov. 19, 2021), available at
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2022/_pdf/Impact1119.pdf (last visited Nov. 29, 2021).
2
Section 212.05(1)(a)1.a., F.S.
3
Section 212.04(1)(b), F.S.
4
Section 212.03(1)(a), F.S.
BILL: SB 786 Page 2
Sales and use tax is added to the price of the taxable good or service and collected from the
purchaser at the time of sale.5
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.6 A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”7 The discretionary sales
surtax is based on the tax rate imposed by the county where the taxable goods or services are
sold or delivered. Discretionary sales surtax rates currently levied vary by county in a range of
0.5 to 2.5 percent.8
Generally, tangible personal property that is sold in an isolated or occasional sale is exempt from
the state sales and use tax.9 A seller makes an isolated or occasional sale if the sale or series of
sales occurs no more than twice during any 12-month period.10 A seller is required to register as
a dealer if he or she completes more than three sales of the same type of item during a 12-month
period. The sale of mobile homes, aircraft, boats, and motor vehicles are expressly excluded
from the isolated or occasional state sales and use tax exemption.11
Florida Taxation of Aircraft
Aircraft purchased through a local dealer or broker are taxed as tangible personal property that
are subject to a 6 percent sales tax at the time of the sale.12 A discretionary local sales tax on up
to the first $5,000 of the purchase price may also be added to the tax.13
An aircraft that is sold by a nonregistered dealer or an aircraft that is purchased in another state
and brought into Florida for storage or use is subject to Florida’s 6 percent use tax.14
Aircraft Sales and Use Tax Exemptions
Common Carrier Exemptions—Sales and Lease Tax
A common carrier is an airline that operates under Federal Aviation Administration
regulations.15 Aircraft operated by a common carrier that either have a maximum certified
5
Section 212.07(2), F.S.
6
Section 212.055, F.S.
7
Section 212.054(2)(a), F.S.
8
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 29, 2021).
9
Fla. Admin. Code R. 12A01.037(1). See also, s. 212.02(2), defining “business” as activity engaged in by a person with the
object of private or public gain, benefit, or advantage.
10
Fla. Admin. Code R. 12A-1.037(3)(b).
11
See, s. 212.05(1)(a)1.b., and Fla. Admin. Code R. 12A-1.037(2)(a)1.
12
Section 212.05(1), F.S.
13
Fla. Dep’t. of Revenue, Form GT-800008, Sales and Use Tax Aircraft Information for Owners and Purchasers (rev. Sept.,
2020), available at https://floridarevenue.com/Forms_library/current/gt800008.pdf (last visited Nov. 29, 2021). See also, Fla.
Dep’t. of Revenue, Sales and Use Tax Return for Aircraft- Form DR-15AIR (rev. Jan. 2016), available at
https://floridarevenue.com/Forms_library/current/dr15air.pdf (last visited Nov. 29, 2021).
14
Section 212.05(1)(a), F.S. See also, Fla. Dep’t. of Revenue, Form GT-800008, supra note 13.
15
The common carrier, as defined in Section 121 or 129 of the Federal Aviation Administration Regulations, is an airline,
regional air carrier, or cargo operator that is regulated by the Federal Aviation Administration. 14 CFR §§121, 129.
BILL: SB 786 Page 3
takeoff weight of more than 15,000 pounds, and those deemed “qualified aircraft” are exempt
from Florida’s sales and use tax.16 A “qualified aircraft” is any aircraft that has a maximum
certified takeoff weight of less than 10,000 pounds and that is equipped with twin turbofan
engines that meet Stage IV noise requirements that is used by a business that operates as an on-
demand air carrier, which owns or leases a fleet of 25 or more aircraft in Florida.17 In order to
qualify for this sales and lease tax exemption, the qualified aircraft must be offered for use in a
Florida university’s flight training and research program.18 Aircraft that qualify for the sales and
lease tax exemption in virtue of their weight of more than 15,000 pounds are not required to offer
their aircraft for use in research to qualify for the exemption.
Common Carrier Exemption- Tax on Repair and Maintenance
Labor charges for the repair and maintenance of qualified aircraft and aircraft that weigh more
than 2,000 pounds maximum certified takeoff weight are exempt from tax under ch. 212, F.S. 19
Similarly, replacement engines, parts, and equipment used to repair or maintain these aircraft are
exempt from the tax imposed under ch. 212, F.S. if the repair occurs in Florida.20
To receive the repair and maintenance exemptions for a qualified aircraft, a purchaser or lessee
must offer, in writing, to participate in a Florida university’s flight training and research
program.21
Fly-Away Exemption22
If a nonresident purchases an aircraft in Florida and plans to remove the aircraft from the state,
the purchase is exempt from sales tax pursuant to an exemption commonly referred to as the
“fly-away exemption.”23 However, the nonresident purchaser must remove the aircraft from
Florida within 10 days of its purchase.24 Additionally, the aircraft cannot return to Florida for a
total of more than 21 days during the 6-month period after its date of purchase or otherwise
appropriate departure from the state.
The nonresident purchaser must provide the Department of Revenue with proof of transport of
the aircraft out of state and its registration (or application for registration) in a state other than
Florida.25
16
Section 212.08(7)(ss), F.S.
17
Section 212.02 (33), F.S.
18
Section 212.0801, F.S.
19
Section 212.08(7)(ee), F.S.
20
Section 212.08(7)(rr), F.S.
21
Section 212.0801, F.S.
22
Sections 212.08(7)(fff)1. And 212.05(1)(a)2., F.S. See also, Michael Cosby, A Practitioner’s Guide to State Tax Issues
Related to Private Aircraft Ownership and Operation, p. 33 (Summer 2018),
https://hbfiles.blob.core.windows.net/files/65772_6-12-18_-_jsta_-_cosby_planes.pdf (last visited Nov. 29, 2021).
23
Cosby, supra note 15. See also, Fla. Dep’t. of Revenue, Form GT-800008, supra note 13 at p. 2.
24
Section 212.08(7)(fff)1., F.S.
25
See, e.g., Fla. Admin. Code R. 12A-1.007(10).
BILL: SB 786 Page 4
Aircraft Repair and Maintenance
As described above, labor charges and specific equipment used for the repair and maintenance of
qualified aircraft and aircraft of more than 2,000 pounds maximum certified takeoff weight,
including rotary wing aircraft, are exempt from the tax imposed under ch. 212, F.S.26
Additionally, nonresident purchasers of aircraft in Florida are exempt from Florida use tax for
the duration of the aircraft’s placement in a Florida registered repair facility for the purpose of
repairs, alterations, refitting, or modification.27 However, the nonresident aircraft must be
removed from Florida within 20 days of completion of the repairs to maintain this exemption.
Foreign Jurisdiction’s Taxation of Aircraft
The sales and use tax laws applicable to the sale and storage or use of aircraft in the United
States vary widely. Alaska,28 Delaware,29 Montana,30 New Hampshire,31 and Oregon32 do not
levy a statewide tax on the sale of goods in general, and therefore do not levy a sales tax on
aircraft. These states may apply local sales tax or rental tax to the sale or use of the aircraft,
however.33 Connecticut offers a sales tax exemption on aircraft that weight 6,000 pounds or
more.34 North Carolina caps their tax at $2,500 for specific aircraft and aircraft engines.35 Rhode
Island exempts the sale, storage, use, or consumption of an aircraft or aircraft parts from their
state sales and use taxes if the aircraft or aircraft parts are used in Rhode Island.36
III. Effect of Proposed Changes:
The bill exempts all sales and leases of aircraft from the sales and use tax. Currently, Florida
exempts the sale or lease of specific aircraft used by an airline from state tax; all other aircraft
are subject to state sales tax of 6 percent and any discretionary local sales tax.
26
Section 212.08(7)(ee)2, F.S.
27
Section 212.08(7)(fff)2., F.S.
28
Alaska Dep’t. of Revenue- Tax Division, Sales and Use Tax News: Does Alaska have a Sales and Use Tax?,
http://tax.alaska.gov/programs/programs/index.aspx?10002 (last visited Nov. 29, 2021).
29
Effective February 1, 2003, aircraft are exempt from retail and wholesale gross receipt taxes in Delaware. Delaware Div. of
Revenue, Aircraft Sales, https://revenue.delaware.gov/business-tax-forms/aircraft-sales/ (last visited Nov. 29, 2021).
30
Montana levies an annual “fee in lieu of tax” for aircraft based on the age and type of aircraft, ranging from $37.50-$4,500.
Mont. Code Ann. §§67-3-201 and 67-3-206.
31
New Hampshire levies an aircraft operating fee ranging from $100-$3,500 per aircraft, based on its weight, but does not
levy any sales tax. N.H. Code Ann. § 2371:1- 237:7 (2018). See also, New Hampshire Dept. of Transp., Aircraft
Registrations: How Much Are the Registration Fees?, https://www.nh.gov/dot/org/aerorailtransit/aeronautics/faq.htm#Q1
(last visited Nov. 29, 2021).
32
Owners of civil aircraft are exempt from ad valorem property taxation. ORS § 308.558,
https://oregon.public.law/statutes/ors_308.558 (last visited Nov. 29, 2021).
33
These five states do not levy any state sales tax, and therefore aircraft sales that occur in those states are not subject to a
state sales tax in that jurisdiction. Janelle Cammenga, Tax Foundation, State & Local Sales Tax Rates, p. 5-6, (Jan. 2020),
https://taxfoundation.org/2020-sales-taxes/ (last visited Nov. 29, 2021). See also, Michael Cosby, supra note 22.
34
Conn. Gen. Stat. §12-412(99), https://portal.ct.gov/DRS/Sales-Tax/Exemptions-from-Sales-and-Use-Taxes (last visited
Nov. 29, 2021).
35
North Carolina Dep’t. of Revenue- Sales and Use Tax Div., Sales and Use Tax Bulletins, p. 62 (Jan. 2021), available at
https://www.ncdor.gov/media/11564/open (last visited Nov. 29, 2021).
36
R.I. Gen. Laws § 44-18-30(56), http://webserver.rilin.state.ri.us/Statutes/TITLE44/44-18/44-18-30.HTM (last visited Nov.
29, 2021).
BILL: SB 786 Page 5
The bill takes effect July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws that have an insignificant impact,37, 38 which
is $2.3 million or less for Fiscal Year 2022-2023.39
The Revenue Estimating Conference determined that the bill reduce the authority that
counties have to raise revenue from the local option sales tax by 3.9 million in Fiscal
Year 2022-2023.40 Therefore, the mandates provision may apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
37
FLA. CONST. art. VII, s. 18(d).
38
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last
visited Nov. 29, 2021).
39
Based on the Demographic Estimating Conference’s population adopted on March 3, 2021. The conference packet is
available at http://edr.state.fl.us/Content/conferences/population/ConferenceResults.pdf (last visited Nov. 29, 2021).
40
The Revenue Estimating Conference, 2022 Regular Session Revenue Estimating Conference: Impact Conference Results,
p. 45-46 (Nov. 19, 2021), available at
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2022/_pdf/Impact1119.pdf (last visited Nov. 29, 2021).
BILL: SB 786 Page 6
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference estimates that the bill will reduce General Revenue
receipts by $23.3 million and local government revenues by $6.9 million in Fiscal Year
2022-23.
B. Private Sector Impact:
The private sector will experience reduced costs associated with aircraft purchases due to
the sales and use tax exemption provided in this legislation. Some individuals may delay
their purchase of a qualifying aircraft until implementation of this bill in order to realize
cost savings of the tax exemption.
C. Government Sector Impact:
The Department of Revenue will be required to update Rules 12A-1.007 and 12A-1.097,
Florida Administrative Code, and Forms DR-15AIR, DR-300400, GT-800008, and GT-
800009. Additionally, the Department will need to eliminate or revise certain brochures
relating to the taxation of aircraft. The Department estimates that it will expend less than
$25,000 to perform these updates.41
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill amends the sales and use tax exemption to apply simply to “an aircraft.” There is no
definition of the term “aircraft” in ch. 212, F.S. However, s. 330.27, F.S., defines “aircraft” as “a
powered or unpowered machine or device capable of atmospheric flight, except a parachute or
other such device used primarily as safety equipment.” This definition may capture machines or
devices other than airplanes, including drones and certain model airplanes.
VIII. Statutes Affected:
This bill substantially amends s. 212.08 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
41
Fla. Dep’t. of Revenue, SB 786 Agency Analysis, p. 2-3 (Nov. 4, 2022) (on file with the Senate Committee on Commerce
and Tourism).
BILL: SB 786 Page 7
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 SB 786 Florida Senate - 2022 SB 786
By Senator Hutson
7-00872-22 2022786__ 7-00872-22 2022786__
1 A bill to be entitled 30 or the entity obtains or provides other documentation as
2 An act relating to aircraft sales and lease tax; 31 required by the department. Eligible purchases or leases made
3 amending s. 212.08, F.S.; exempting all aircraft sales 32 with such a certificate must be in strict compliance with this
4 and leases, rather than the sales and leases of 33 subsection and departmental rules, and any person who makes an
5 certain aircraft, from the sales and use tax; deleting 34 exempt purchase with a certificate that is not in strict
6 the definition of the term “common carrier” to conform 35 compliance with this subsection and the rules is liable for and
7 to changes made by the act; providing an effective 36 shall pay the tax. The department may adopt rules to administer
8 date. 37 this subsection.
9 38 (ss) Aircraft sales or leases.—The sale or lease of a
10 Be It Enacted by the Legislature of the State of Florida: 39 qualified aircraft or an aircraft of more than 15,000 pounds
11 40 maximum certified takeoff weight for use by a common carrier is
12 Section 1. Paragraph (ss) of subsection (7) of section 41 exempt from the tax imposed by this chapter. As used in this
13 212.08, Florida Statutes, is amended to read: 42 paragraph, “common carrier” means an airline operating under
14 212.08 Sales, rental, use, consumption, distribution, and 43 Federal Aviation Administration regulations contained in Title
15 storage tax; specified exemptions.—The sale at retail, the 44 14, chapter I, part 121 or part 129 of the Code of Federal
16 rental, the use, the consumption, the distribution, and the 45 Regulations.
17 storage to be used or consumed in this state of the following 46 Section 2. This act shall take effect July 1, 2022.
18 are hereby specifically exempt from the tax imposed by this
19 chapter.
20 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
21 entity by this chapter do not inure to any transaction that is
22 otherwise taxable under this chapter when payment is made by a
23 representative or employee of the entity by any means,
24 including, but not limited to, cash, check, or credit card, even
25 when that representative or employee is subsequently reimbursed
26 by the entity. In addition, exemptions provided to any entity by
27 this subsection do not inure to any transaction that is
28 otherwise taxable under this chapter unless the entity has
29 obtained a sales tax exemption certificate from the department
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Meeting Date
APPEARANCE RECORD
Deli er both copi s of this for to Bill Number or Topic
.. Senate prof ssional staf conducting the m eting
' Co mittee
Amend ent Barcode (if applicable)
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_ Phone Q/ /
Street
S ate
2312
Zip
Against information OR Waive Speaking: Din Support Against
PLEASE CHECK ONE OF THE FOLLOWING:
| j I am appearing without [ | 1 am a registered lobbyist,
co pensation or sponsorship. I a not a lobbyist, but received
representing:
so ething of value for my appearance
(travel, eals, lodging, etc.),
This for is part of the public record for this eeting.
S-001 (08/10/2021)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 830
INTRODUCER: Commerce and Tourism Committee and Senator Hooper
SUBJECT: Sales Tax
DATE: November 30, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
SB 830 decreases the applicable state sales tax on the sale of a new mobile home from 6 percent
to 3 percent. A “new mobile home” is one that has never been transferred by a manufacturer or
similar entity to a purchaser.
The Revenue Estimating Conference has not yet reviewed the economic impact of this bill.
The bill takes effect on October 1, 2022.
II. Present Situation:
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,1 admissions,2 transient rentals,3 and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
1
Section 212.05(1)(a)1.a., F.S.
2
Section 212.04(1)(b), F.S.
3
Section 212.03(1)(a), F.S.
BILL: CS/SB 830 Page 2
Sales tax is added to the price of the taxable good or service and collected from the purchaser at
the time of sale.4
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.5 A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”6 The discretionary sales
surtax is based on the tax rate imposed by the county where the taxable goods or services are
sold or delivered. Discretionary sales surtax rates currently levied vary by county in a range of
0.5 to 2.5 percent.7
Generally, tangible personal property that is sold in an isolated or occasional sale is exempt from
the state sales tax.8 A seller makes an isolated or occasional sale if the sale or series of sales
occurs no more than twice during any 12-month period.9 A seller is required to register as a
dealer if he or she completes more than three sales of the same type of item during a 12-month
period. The sale of mobile homes, aircrafts, boats, and motor vehicles are expressly excluded
from the isolated or occasional state sales and use tax exemption.10
Florida Taxation of Mobile Homes
Mobile homes, aircrafts, boats, and certain motor vehicles are classified as tangible personal
property11 and are subject to a 6 percent sales tax at each sale, including an occasional or isolated
sale.12 In addition, a Florida mobile home is taxed annually in one of the following three ways: 13
Assessed and taxed as real property by the county property appraiser;
Subjected to an annual license tax by the county tax collector’s office; or
Assessed and taxed as tangible personal property by the county property appraiser.
If the mobile home’s owner permanently affixes the mobile home to land that he or she owns,
then the mobile home may be considered real property.14 The local property appraiser assesses
and then lists the mobile home as real property based on his or her findings. If the mobile home
is real property, the owner must make a one-time purchase of a $3 RP decal from his or her local
county tax collector’s office.15 The RP decal subjects the mobile home to annual assessment and
4
Section 212.07(2), F.S.
5
Section 212.055, F.S.
6
Section 212.054(2)(a), F.S.
7
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Nov. 30, 2021).
8
Fla. Admin. Code R. 12A01.037(1). See also, s. 212.02(2), defining “business” as activity engaged in by a person with the
object of private or public gain, benefit, or advantage.
9
Fla. Admin. Code R. 12A-1.037(3)(b).
10
See, s. 212.05(1)(a)1.b., and Fla. Admin. Code R. 12A-1.037(2)(a)1.
11
Section 212.02(19), F.S.
12
Section 212.05(1)(a)1.b., F.S.
13
See generally, Florida Department of Revenue, Form 800047, Taxation of Mobile Homes in Florida (rev. Dec. 2017),
available at https://floridarevenue.com/Forms_library/current/gt800047.pdf (last visited Nov. 30, 2021).
14
Section 320.015, F.S.
15
While the RP decal is issued by local county property appraisers, it is provided by the Department of Highway Safety and
Motor Vehicles to the county tax collectors. The $3 fee is distributed as follows: $2.50 to the tax collector, 25 cents to the
property appraiser, and 25 cents to the DHSMV. Section 320.0815(2), F.S. See, e.g., Florida Department of Revenue,
BILL: CS/SB 830 Page 3
taxation by the county property appraiser. If the mobile home continues to be affixed to the land,
it is considered real property, and therefore taxed as such (exempt from subsequent sales and use
tax) at subsequent sales.16
A mobile home that is affixed to land that is owned by someone other than the mobile home’s
owner is subject to an annual license tax, which is levied by the Department of Highway Safety
and Motor Vehicles, and can be purchased at the local county tax collector’s office.17 This
license tax varies from $20 to $80, based on the mobile home’s length.18
Any mobile home that qualifies for, but fails to pay, the license tax, is assessed and taxed as
tangible personal property by the county property appraiser.19 The mobile home is then placed on
the tangible personal property assessment roll and is taxed as such for the year. If the owner
purchases an annual license tax for the mobile home before January 1 of the next year, then the
mobile home will be removed from the tangible personal property assessment roll, and would not
be subject to further tangible personal property taxation.
III. Effect of Proposed Changes:
The bill reduces state sales tax from 6 percent to 3 percent on the sale of a new mobile home.
The bill relies on the definition of “new mobile home” provided in s. 319.001(8), F.S., which
defines it as a mobile home for which equitable or legal title has not yet been transferred by a
manufacturer, distributor, importer, or dealer to an ultimate purchaser.
The bill takes effect on October 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws that have an insignificant impact, which is
$2.2 million or less for Fiscal Year 2022-2023.
Declaration of Mobile Home as Real Property: Form DR-402 (Aug. 1995),
https://floridarevenue.com/property/Documents/dr402.pdf (last visited Nov. 30, 2021).
16
Florida Department of Revenue, SB 830 Agency Analysis (Nov. 16, 2021) (on file with the Senate Committee on
Commerce and Tourism).
17
Sections 320.015 and 320.0815(2), F.S. See also, Florida Department of Revenue, supra note 13.
18
Section 320.08(11), F.S.
19
Florida Department of Revenue, supra note 13.
BILL: CS/SB 830 Page 4
The mandates provision of Art. VII, Section 18, of the Florida Constitution may apply,
however, the Revenue Estimating Conference has not yet determined a fiscal impact of
the bill.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The purchaser of a new mobile home from a dealer would pay 3 percent state sales and
use tax instead of a 6 percent state tax.
C. Government Sector Impact:
The Revenue Estimating Conference has not yet determined a fiscal impact of the bill,
however the state will likely realize a loss in sales and use tax dollars on the sale of
mobile homes.
The Department of Revenue may be required to undergo rulemaking to update Rule 12A-
1.007 of the Florida Administrative Code.
The Department of Revenue may incur expenses related to creating and issuing a
Taxpayer Information Publication (TIP) to alert eligible taxpayers about the tax reduction
and exemption.
VI. Technical Deficiencies:
None.
BILL: CS/SB 830 Page 5
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 212.05 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on November 30, 2021:
Removes the sale of used mobile homes from the sales tax reduction provided in the
bill;
Reduces the applicable state sales tax on the sale of new mobile homes from 6
percent to 3 percent, rather than limiting the tax to 50 percent of the sales price; and
Delays the effective date to October 1, 2022, better allow the DOR to notify affected
parties and update their processes before the tax reduction goes into effect.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 830
Ì643954AÎ643954
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
11/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Hooper) recommended the
following:
1 Senate Amendment (with directory and title amendments)
2
3 Delete lines 23 - 196
4 and insert:
5 (n) At the rate of 3 percent of the sales price on the sale
6 of a new mobile home. As used in this paragraph, the term “new
7 mobile home” has the same meaning as in s. 319.001.
8
9 ====== D I R E C T O R Y C L A U S E A M E N D M E N T ======
10 And the directory clause is amended as follows:
Page 1 of 2
11/19/2021 11:05:18 AM 577-01145-22
Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 830
Ì643954AÎ643954
11 Delete lines 9 - 10
12 and insert:
13 Section 1. Paragraph (n) is added to subsection (1) of
14 section 212.05, Florida Statutes, to read:
15
16 ================= T I T L E A M E N D M E N T ================
17 And the title is amended as follows:
18 Delete lines 3 - 5
19 and insert:
20 F.S.; specifying the sales tax rate on new mobile
21 homes; defining the term “new mobile home”; providing
22 an effective date.
Page 2 of 2
11/19/2021 11:05:18 AM 577-01145-22
Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 830
Ì607718AÎ607718
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
11/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Hooper) recommended the
following:
1 Senate Amendment
2
3 Delete line 197
4 and insert:
5 Section 2. This act shall take effect October 1, 2022.
Page 1 of 1
11/29/2021 4:43:40 PM 577-01274-22
Florida Senate - 2022 SB 830 Florida Senate - 2022 SB 830
By Senator Hooper
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1 A bill to be entitled 30 required to be registered, licensed, titled, or documented in
2 An act relating to sales tax; amending s. 212.05, 31 this state or by the United States Government shall be subject
3 F.S.; specifying the sales tax rate on mobile homes 32 to tax at the rate provided in this paragraph. A mobile home
4 subject to sales tax as tangible personal property; 33 must be assessed sales tax at a rate of 6 percent on 50 percent
5 providing an exception; providing an effective date. 34 of the sales price of the mobile home, if subject to sales tax
6 35 as tangible personal property. However, a mobile home is not
7 Be It Enacted by the Legislature of the State of Florida: 36 subject to sales tax if the mobile home will be permanently
8 37 affixed to the land and the purchaser signs an affidavit stating
9 Section 1. Paragraph (a) of subsection (1) of section 38 that he or she intends to seek an “RP” series sticker pursuant
10 212.05, Florida Statutes, is amended to read: 39 to s. 320.0815(2). The department shall by rule adopt any
11 212.05 Sales, storage, use tax.—It is hereby declared to be 40 nationally recognized publication for valuation of used motor
12 the legislative intent that every person is exercising a taxable 41 vehicles as the reference price list for any used motor vehicle
13 privilege who engages in the business of selling tangible 42 which is required to be licensed pursuant to s. 320.08(1), (2),
14 personal property at retail in this state, including the 43 (3)(a), (b), (c), or (e), or (9). If any party to an occasional
15 business of making or facilitating remote sales; who rents or 44 or isolated sale of such a vehicle reports to the tax collector
16 furnishes any of the things or services taxable under this 45 a sales price which is less than 80 percent of the average loan
17 chapter; or who stores for use or consumption in this state any 46 price for the specified model and year of such vehicle as listed
18 item or article of tangible personal property as defined herein 47 in the most recent reference price list, the tax levied under
19 and who leases or rents such property within the state. 48 this paragraph shall be computed by the department on such
20 (1) For the exercise of such privilege, a tax is levied on 49 average loan price unless the parties to the sale have provided
21 each taxable transaction or incident, which tax is due and 50 to the tax collector an affidavit signed by each party, or other
22 payable as follows: 51 substantial proof, stating the actual sales price. Any party to
23 (a)1.a. At the rate of 6 percent of the sales price of each 52 such sale who reports a sales price less than the actual sales
24 item or article of tangible personal property when sold at 53 price is guilty of a misdemeanor of the first degree, punishable
25 retail in this state, computed on each taxable sale for the 54 as provided in s. 775.082 or s. 775.083. The department shall
26 purpose of remitting the amount of tax due the state, and 55 collect or attempt to collect from such party any delinquent
27 including each and every retail sale. 56 sales taxes. In addition, such party shall pay any tax due and
28 b. Each occasional or isolated sale of an aircraft, boat, 57 any penalty and interest assessed plus a penalty equal to twice
29 mobile home, or motor vehicle of a class or type which is 58 the amount of the additional tax owed. Notwithstanding any other
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59 provision of law, the Department of Revenue may waive or 88 filed with a civil airworthiness authority of a foreign
60 compromise any penalty imposed pursuant to this subparagraph. 89 jurisdiction within 10 days after the date of purchase;
61 2. This paragraph does not apply to the sale of a boat or 90 (II) The purchaser removes the aircraft from the state to a
62 aircraft by or through a registered dealer under this chapter to 91 foreign jurisdiction within 10 days after the date the aircraft
63 a purchaser who, at the time of taking delivery, is a 92 is registered by the applicable foreign airworthiness authority;
64 nonresident of this state, does not make his or her permanent 93 and
65 place of abode in this state, and is not engaged in carrying on 94 (III) The aircraft is operated in the state solely to
66 in this state any employment, trade, business, or profession in 95 remove it from the state to a foreign jurisdiction.
67 which the boat or aircraft will be used in this state, or is a 96
68 corporation none of the officers or directors of which is a 97 For purposes of this sub-subparagraph, the term “foreign
69 resident of, or makes his or her permanent place of abode in, 98 jurisdiction” means any jurisdiction outside of the United
70 this state, or is a noncorporate entity that has no individual 99 States or any of its territories;
71 vested with authority to participate in the management, 100 b. The purchaser, within 90 days from the date of
72 direction, or control of the entity’s affairs who is a resident 101 departure, provides the department with written proof that the
73 of, or makes his or her permanent abode in, this state. For 102 purchaser licensed, registered, titled, or documented the boat
74 purposes of this exemption, either a registered dealer acting on 103 or aircraft outside the state. If such written proof is
75 his or her own behalf as seller, a registered dealer acting as 104 unavailable, within 90 days the purchaser shall provide proof
76 broker on behalf of a seller, or a registered dealer acting as 105 that the purchaser applied for such license, title,
77 broker on behalf of the purchaser may be deemed to be the 106 registration, or documentation. The purchaser shall forward to
78 selling dealer. This exemption shall not be allowed unless: 107 the department proof of title, license, registration, or
79 a. The purchaser removes a qualifying boat, as described in 108 documentation upon receipt;
80 sub-subparagraph f., from the state within 90 days after the 109 c. The purchaser, within 30 days after removing the boat or
81 date of purchase or extension, or the purchaser removes a 110 aircraft from Florida, furnishes the department with proof of
82 nonqualifying boat or an aircraft from this state within 10 days 111 removal in the form of receipts for fuel, dockage, slippage,
83 after the date of purchase or, when the boat or aircraft is 112 tie-down, or hangaring from outside of Florida. The information
84 repaired or altered, within 20 days after completion of the 113 so provided must clearly and specifically identify the boat or
85 repairs or alterations; or if the aircraft will be registered in 114 aircraft;
86 a foreign jurisdiction and: 115 d. The selling dealer, within 30 days after the date of
87 (I) Application for the aircraft’s registration is properly 116 sale, provides to the department a copy of the sales invoice,
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117 closing statement, bills of sale, and the original affidavit 146 (III) Decals shall display information to identify the boat
118 signed by the purchaser attesting that he or she has read the 147 as a qualifying boat under this sub-subparagraph, including, but
119 provisions of this section; 148 not limited to, the decal’s date of expiration.
120 e. The seller makes a copy of the affidavit a part of his 149 (IV) The department is authorized to require dealers who
121 or her record for as long as required by s. 213.35; and 150 purchase decals to file reports with the department and may
122 f. Unless the nonresident purchaser of a boat of 5 net tons 151 prescribe all necessary records by rule. All such records are
123 of admeasurement or larger intends to remove the boat from this 152 subject to inspection by the department.
124 state within 10 days after the date of purchase or when the boat 153 (V) Any dealer or his or her agent who issues a decal
125 is repaired or altered, within 20 days after completion of the 154 falsely, fails to affix a decal, mismarks the expiration date of
126 repairs or alterations, the nonresident purchaser applies to the 155 a decal, or fails to properly account for decals will be
127 selling dealer for a decal which authorizes 90 days after the 156 considered prima facie to have committed a fraudulent act to
128 date of purchase for removal of the boat. The nonresident 157 evade the tax and will be liable for payment of the tax plus a
129 purchaser of a qualifying boat may apply to the selling dealer 158 mandatory penalty of 200 percent of the tax, and shall be liable
130 within 60 days after the date of purchase for an extension decal 159 for fine and punishment as provided by law for a conviction of a
131 that authorizes the boat to remain in this state for an 160 misdemeanor of the first degree, as provided in s. 775.082 or s.
132 additional 90 days, but not more than a total of 180 days, 161 775.083.
133 before the nonresident purchaser is required to pay the tax 162 (VI) Any nonresident purchaser of a boat who removes a
134 imposed by this chapter. The department is authorized to issue 163 decal before permanently removing the boat from the state, or
135 decals in advance to dealers. The number of decals issued in 164 defaces, changes, modifies, or alters a decal in a manner
136 advance to a dealer shall be consistent with the volume of the 165 affecting its expiration date before its expiration, or who
137 dealer’s past sales of boats which qualify under this sub- 166 causes or allows the same to be done by another, will be
138 subparagraph. The selling dealer or his or her agent shall mark 167 considered prima facie to have committed a fraudulent act to
139 and affix the decals to qualifying boats in the manner 168 evade the tax and will be liable for payment of the tax plus a
140 prescribed by the department, before delivery of the boat. 169 mandatory penalty of 200 percent of the tax, and shall be liable
141 (I) The department is hereby authorized to charge dealers a 170 for fine and punishment as provided by law for a conviction of a
142 fee sufficient to recover the costs of decals issued, except the 171 misdemeanor of the first degree, as provided in s. 775.082 or s.
143 extension decal shall cost $425. 172 775.083.
144 (II) The proceeds from the sale of decals will be deposited 173 (VII) The department is authorized to adopt rules necessary
145 into the administrative trust fund. 174 to administer and enforce this subparagraph and to publish the
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175 necessary forms and instructions.
176 (VIII) The department is hereby authorized to adopt
177 emergency rules pursuant to s. 120.54(4) to administer and
178 enforce the provisions of this subparagraph.
179
180 If the purchaser fails to remove the qualifying boat from this
181 state within the maximum 180 days after purchase or a
182 nonqualifying boat or an aircraft from this state within 10 days
183 after purchase or, when the boat or aircraft is repaired or
184 altered, within 20 days after completion of such repairs or
185 alterations, or permits the boat or aircraft to return to this
186 state within 6 months from the date of departure, except as
187 provided in s. 212.08(7)(fff), or if the purchaser fails to
188 furnish the department with any of the documentation required by
189 this subparagraph within the prescribed time period, the
190 purchaser shall be liable for use tax on the cost price of the
191 boat or aircraft and, in addition thereto, payment of a penalty
192 to the Department of Revenue equal to the tax payable. This
193 penalty shall be in lieu of the penalty imposed by s. 212.12(2).
194 The maximum 180-day period following the sale of a qualifying
195 boat tax-exempt to a nonresident may not be tolled for any
196 reason.
197 Section 2. This act shall take effect upon becoming a law.
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CourtSmart Tag Report
Room: SB 110 Case No.: Type:
Caption: Commerce and Tourism Judge:
Started: 11/30/2021 9:02:07 AM
Ends: 11/30/2021 9:43:19 AM Length: 00:41:13
9:02:08 AM Chair Hooper calls meeting to order
9:02:19 AM Roll call, quorum present
9:02:33 AM Chair gives opening comments
9:02:49 AM Tab 4 SB 800 by Senator Albritton
9:03:02 AM Senator Albritton presents bill
9:03:35 AM No questions
9:03:39 AM Connie Vanassche, Okeechobee Co Board of County Commisioners waives in support
9:04:01 AM Jeff Scala, Fl Association of Counties waives in support
9:04:18 AM David Kraus, Columbia county, waives in support
9:04:40 AM Michael Grissom, Fl Rural Economic Development waives in support
9:04:58 AM Carolyn Johnson, FL Chamber of Commerce waives in support
9:04:59 AM Darrick McGhee, Sr of Florida's Great Northwest, waives in support
9:05:01 AM Senator Albritton waives close
9:05:13 AM SB 800 passes favorably
9:05:39 AM Tab 5 SB 786 by Senator Hutson
9:06:08 AM Senator Powell in questions
9:06:24 AM Senator Hutson responds
9:06:40 AM Back and forth in questions
9:08:24 AM Senator Torres in questions
9:08:35 AM Senator Hutson responds
9:09:10 AM Back and forth in questions
9:10:47 AM Eric Prutsman FL Airports Council, waives in support
9:11:05 AM Senator Powell in debate
9:11:59 AM Senator Torres in debate
9:12:21 AM Senator Hutson closes on SB 786
9:12:50 AM SB 786 passes favorably
9:13:24 AM Tab 1 SB 356 by Senator Jones
9:13:39 AM Senator Jones presents bill
9:14:54 AM Jonathon Webber FL of Conservation Voters, waives in support
9:15:08 AM Jeff Scala of FL Assosition of Counties, waives in support
9:15:22 AM David Cullen of Sierra Club FL, waives in support
9:15:29 AM No debate
9:15:32 AM Senator Jones closes on bill
9:15:41 AM Senator Powell in debate
9:16:06 AM SB 356 passes favorably
9:16:33 AM Tab 3 SB 542 by Senator Rodriquez
9:17:03 AM Senator Torres in questions
9:18:07 AM Senator Rodriguez in response
9:18:21 AM Senator Pizzo in questions
9:18:31 AM Senator Rodriguez in response
9:19:33 AM Senator Pizzo in questions
9:19:45 AM Senator Rodriguez responds
9:20:17 AM Back and forth in questions
9:22:26 AM Phillip Suderman with Americans For Prosperity speaks in clarification of question
9:23:55 AM Senator Pizzo in questions
9:24:02 AM Phillip Suderman responds
9:24:11 AM Senator Pizzo in questions
9:24:22 AM Phillip Suderman responds
9:25:05 AM Phillip Suderman with Americans for Prosperity speaks in support
9:26:02 AM Senator Taddeo in questions
9:26:13 AM Phillip Suderman responds
9:26:26 AM Senator Taddeo in questions
9:26:49 AM Phillip Suderman responds
9:28:03 AM Back and forth in questions
9:29:01 AM Senator Taddeo in debate
9:30:55 AM Vice Chair Wright in debate
9:31:52 AM Senator Powell in debate
9:33:48 AM Senator Rodriquez closes on SB 542
9:34:22 AM SB 542 passes favorably
9:34:48 AM Tab 2 SB 500 by Senator Perry presented by Senator Gruters
9:35:34 AM No questions
9:35:38 AM Lorena Holley of FL Retail Federation, waives in support
9:35:50 AM Senator Pizzo in debate
9:36:21 AM Senator Gruters in response
9:36:54 AM Senator Gruters closes on SB 500
9:37:07 AM SB 500 passes favorably
9:37:31 AM Gavel turned over to Vice Chair Wright
9:37:42 AM Tab 6 SB 830 by Senator Hooper
9:37:51 AM Senator Hooper explains SB 830
9:38:25 AM Amendment 643954
9:38:47 AM Amendment 643954 passes
9:39:41 AM Late filed amendment 607718
9:40:03 AM Senator Pizzo in questions
9:40:25 AM No debate
9:40:43 AM Amendment 607718 is adopted
9:40:57 AM Back on bill as amended
9:41:04 AM Jim Ayotte of FL Manufactured Housing Association, waives in support
9:41:26 AM Senator Hooper waives close
9:41:36 AM CS/SB 830 passes favorably
9:41:53 AM Gavel back to Chair Hooper
9:42:07 AM Senator Pizzo for votes after
9:42:29 AM Senator Garcia for votes after
9:42:34 AM Senator Taddeo for votes after
9:42:39 AM Senator Wright for votes after
9:43:02 AM Senator Pizzo moves to adjourn
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