HB 589 2022
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hb0589-00
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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
A bill to be entitled 1
An act relating to sales tax exemptions for public 2
works; amending s. 212.08, F.S.; providing instances 3
when sales of certain tangible personal property to 4
contractors are not exempt from sales and use tax; 5
prohibiting certain nonprofit entities that used a 6
sales tax exemption illegally from transferring 7
liability for the tax, penalty, or interest to another 8
party; requiring the Department of Revenue to adopt 9
rules prohibiting certain parties that receive a sales 10
tax exemption from assigning responsibility related to 11
tangible personal property to other parties; requiring 12
the department to establish by rule a process to 13
suspend a public entity's ability to use a tax 14
exemption if certain conditions are met; amending s. 15
212.15, F.S.; providing an exception for when certain 16
taxes are considered state funds; providing an 17
effective date. 18
19
Be It Enacted by the Legislature of the State of Florida: 20
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Section 1. Paragraph (d) of subsection (6) of section 22
212.08, Florida Statutes, is redesignated as paragraph (e), 23
paragraphs (b) and (c) are amended, and a new paragraph (d) is 24
added to that subsection, to read: 25
HB 589 2022
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hb0589-00
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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
212.08 Sales, rental, use, consumption, distribution, and 26
storage tax; specified exemptions. —The sale at retail, the 27
rental, the use, the consumption, the distribution, and the 28
storage to be used or consumed in this state of the following 29
are hereby specifically exempt from the tax imposed by this 30
chapter. 31
(6) EXEMPTIONS; POLITICAL SUBDIVISIONS ; ELIGIBLE NONPROFIT 32
ENTITIES.— 33
(b) The exemption provided under this subsection does not 34
include sales of tangible personal property made to contractors 35
employed directly to or as agents of any such government or 36
political subdivision if the contractor is responsible for 37
purchasing, maintaining, or paying for the tangible personal 38
property and the when such tangible personal property goes into 39
or becomes a part of public works owned by such government or 40
political subdivision. A determination of whether a particular 41
transaction is properly characterized as an exempt sale to a 42
government entity or a taxable sale to a contractor shall be 43
based upon the substance of the transaction rather than the form 44
in which the transaction is cast. However, for sales of tangible 45
personal property that go into or become a part of public works 46
owned by a governmental entity, other than the Federal 47
Government, a governmental entity claiming the exemption 48
provided under this subsection sh all certify to the dealer and 49
the contractor the entity's claim to the exemption by providing 50
HB 589 2022
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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
the dealer and the contractor a certificate of entitlement to 51
the exemption for such sales. If the department later determines 52
that such sales, in which the gover nmental entity provided the 53
dealer and the contractor with a certificate of entitlement to 54
the exemption, were not exempt sales to the governmental entity, 55
the governmental entity shall be liable for any tax, penalty, 56
and interest determined to be owed on such transactions. 57
Possession by a dealer or contractor of a certificate of 58
entitlement to the exemption from the governmental entity 59
relieves the dealer from the responsibility of collecting tax on 60
the sale and the contractor for any liability for tax, pe nalty, 61
or interest related to the sale, and the department shall look 62
solely to the governmental entity for recovery of tax, penalty, 63
and interest if the department determines that the transaction 64
was not an exempt sale to the governmental entity. The 65
governmental entity or other eligible nonprofit entity using a 66
sales tax exemption for any construction -related activities 67
covered in this chapter may not transfer liability for such tax, 68
penalty, and interest to another party by contract or agreement. 69
(c) The department shall adopt rules for determining 70
whether a particular transaction is properly characterized as an 71
exempt sale to a governmental entity or other eligible nonprofit 72
entity or a taxable sale to a contractor which give special 73
consideration to factors that govern the status of the tangible 74
personal property before being affixed to real property. In 75
HB 589 2022
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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
developing such rules, assumption of the risk of damage or loss 76
is of paramount consideration in the determination. The 77
department shall clarify that a government, political 78
subdivision, religious institution, veterans' organization, 79
school, college, university, or other eligible nonprofit entity 80
claiming the exemption may not assign any responsibility, 81
through an agreement, oral or written, for the ord ering, 82
purchasing, payment, or maintenance of the tangible personal 83
property, material, or supplies on behalf of that nonprofit 84
entity. The department shall also adopt, by rule, a certificate 85
of entitlement to exemption for use as provided in paragraph 86
(b). The certificate shall require the governmental entity to 87
affirm that it will comply with the requirements of this 88
subsection and the rules adopted under paragraph (b) in order to 89
qualify for the exemption and that it acknowledges its liability 90
for any tax, penalty, or interest later determined by the 91
department to be owed on such transactions. 92
(d) The department shall establish by rule a process by 93
which the department may suspend a public entity's ability to 94
use the tax exemption if the entity violates provisions of this 95
section or rules adopted thereunder. 96
Section 2. Subsection (1) of section 212.15, Florida 97
Statutes, is amended to read: 98
212.15 Taxes declared state funds; penalties for failure 99
to remit taxes; due and delinquent dates; judicial re view.— 100
HB 589 2022
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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
(1) The taxes imposed by this chapter shall be considered 101
state funds at the moment of collection , except as provided in 102
s. 212.06(5)(a)2.e., or unless an exemption is claimed under s. 103
212.08(6), become state funds at the moment of collection and 104
shall for each month be due to the department on the first day 105
of the succeeding month and be delinquent on the 21st day of 106
such month. All returns postmarked after the 20th day of such 107
month are delinquent. 108
Section 3. This act shall take effect July 1, 2022. 109