Florida 2022 Regular Session

Florida House Bill H0589 Compare Versions

Only one version of the bill is available at this time.

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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to sales tax exemptions for public 2
16	16	works; amending s. 212.08, F.S.; providing instances 3
17	17	when sales of certain tangible personal property to 4
18	18	contractors are not exempt from sales and use tax; 5
19	19	prohibiting certain nonprofit entities that used a 6
20	20	sales tax exemption illegally from transferring 7
21	21	liability for the tax, penalty, or interest to another 8
22	22	party; requiring the Department of Revenue to adopt 9
23	23	rules prohibiting certain parties that receive a sales 10
24	24	tax exemption from assigning responsibility related to 11
25	25	tangible personal property to other parties; requiring 12
26	26	the department to establish by rule a process to 13
27	27	suspend a public entity's ability to use a tax 14
28	28	exemption if certain conditions are met; amending s. 15
29	29	212.15, F.S.; providing an exception for when certain 16
30	30	taxes are considered state funds; providing an 17
31	31	effective date. 18
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33	33	Be It Enacted by the Legislature of the State of Florida: 20
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35	35	Section 1. Paragraph (d) of subsection (6) of section 22
36	36	212.08, Florida Statutes, is redesignated as paragraph (e), 23
37	37	paragraphs (b) and (c) are amended, and a new paragraph (d) is 24
38	38	added to that subsection, to read: 25
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51	51	212.08 Sales, rental, use, consumption, distribution, and 26
52	52	storage tax; specified exemptions. —The sale at retail, the 27
53	53	rental, the use, the consumption, the distribution, and the 28
54	54	storage to be used or consumed in this state of the following 29
55	55	are hereby specifically exempt from the tax imposed by this 30
56	56	chapter. 31
57	57	(6) EXEMPTIONS; POLITICAL SUBDIVISIONS ; ELIGIBLE NONPROFIT 32
58	58	ENTITIES.— 33
59	59	(b) The exemption provided under this subsection does not 34
60	60	include sales of tangible personal property made to contractors 35
61	61	employed directly to or as agents of any such government or 36
62	62	political subdivision if the contractor is responsible for 37
63	63	purchasing, maintaining, or paying for the tangible personal 38
64	64	property and the when such tangible personal property goes into 39
65	65	or becomes a part of public works owned by such government or 40
66	66	political subdivision. A determination of whether a particular 41
67	67	transaction is properly characterized as an exempt sale to a 42
68	68	government entity or a taxable sale to a contractor shall be 43
69	69	based upon the substance of the transaction rather than the form 44
70	70	in which the transaction is cast. However, for sales of tangible 45
71	71	personal property that go into or become a part of public works 46
72	72	owned by a governmental entity, other than the Federal 47
73	73	Government, a governmental entity claiming the exemption 48
74	74	provided under this subsection sh all certify to the dealer and 49
75	75	the contractor the entity's claim to the exemption by providing 50
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	the dealer and the contractor a certificate of entitlement to 51
89	89	the exemption for such sales. If the department later determines 52
90	90	that such sales, in which the gover nmental entity provided the 53
91	91	dealer and the contractor with a certificate of entitlement to 54
92	92	the exemption, were not exempt sales to the governmental entity, 55
93	93	the governmental entity shall be liable for any tax, penalty, 56
94	94	and interest determined to be owed on such transactions. 57
95	95	Possession by a dealer or contractor of a certificate of 58
96	96	entitlement to the exemption from the governmental entity 59
97	97	relieves the dealer from the responsibility of collecting tax on 60
98	98	the sale and the contractor for any liability for tax, pe nalty, 61
99	99	or interest related to the sale, and the department shall look 62
100	100	solely to the governmental entity for recovery of tax, penalty, 63
101	101	and interest if the department determines that the transaction 64
102	102	was not an exempt sale to the governmental entity. The 65
103	103	governmental entity or other eligible nonprofit entity using a 66
104	104	sales tax exemption for any construction -related activities 67
105	105	covered in this chapter may not transfer liability for such tax, 68
106	106	penalty, and interest to another party by contract or agreement. 69
107	107	(c) The department shall adopt rules for determining 70
108	108	whether a particular transaction is properly characterized as an 71
109	109	exempt sale to a governmental entity or other eligible nonprofit 72
110	110	entity or a taxable sale to a contractor which give special 73
111	111	consideration to factors that govern the status of the tangible 74
112	112	personal property before being affixed to real property. In 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125	developing such rules, assumption of the risk of damage or loss 76
126	126	is of paramount consideration in the determination. The 77
127	127	department shall clarify that a government, political 78
128	128	subdivision, religious institution, veterans' organization, 79
129	129	school, college, university, or other eligible nonprofit entity 80
130	130	claiming the exemption may not assign any responsibility, 81
131	131	through an agreement, oral or written, for the ord ering, 82
132	132	purchasing, payment, or maintenance of the tangible personal 83
133	133	property, material, or supplies on behalf of that nonprofit 84
134	134	entity. The department shall also adopt, by rule, a certificate 85
135	135	of entitlement to exemption for use as provided in paragraph 86
136	136	(b). The certificate shall require the governmental entity to 87
137	137	affirm that it will comply with the requirements of this 88
138	138	subsection and the rules adopted under paragraph (b) in order to 89
139	139	qualify for the exemption and that it acknowledges its liability 90
140	140	for any tax, penalty, or interest later determined by the 91
141	141	department to be owed on such transactions. 92
142	142	(d) The department shall establish by rule a process by 93
143	143	which the department may suspend a public entity's ability to 94
144	144	use the tax exemption if the entity violates provisions of this 95
145	145	section or rules adopted thereunder. 96
146	146	Section 2. Subsection (1) of section 212.15, Florida 97
147	147	Statutes, is amended to read: 98
148	148	212.15 Taxes declared state funds; penalties for failure 99
149	149	to remit taxes; due and delinquent dates; judicial re view.— 100
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162	162	(1) The taxes imposed by this chapter shall be considered 101
163	163	state funds at the moment of collection , except as provided in 102
164	164	s. 212.06(5)(a)2.e., or unless an exemption is claimed under s. 103
165	165	212.08(6), become state funds at the moment of collection and 104
166	166	shall for each month be due to the department on the first day 105
167	167	of the succeeding month and be delinquent on the 21st day of 106
168	168	such month. All returns postmarked after the 20th day of such 107
169	169	month are delinquent. 108
170	170	Section 3. This act shall take effect July 1, 2022. 109