CS/HB 763 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
A bill to be entitled 1
An act relating to tax exemption for charges for 2
private investigations; amending s. 212.05, F.S.; 3
providing that charges for private investigations by 4
private investigative agencies are not subject to the 5
sales and use tax; defining terms related to such 6
agencies and investigations; providing an effective 7
date. 8
9
Be It Enacted by the Legislature of the State of Florida: 10
11
Section 1. Paragraph (i) o f subsection (1) of section 12
212.05, Florida Statutes, is amended to read: 13
212.05 Sales, storage, use tax. —It is hereby declared to 14
be the legislative intent that every person is exercising a 15
taxable privilege who engages in the business of selling 16
tangible personal property at retail in this state, including 17
the business of making or facilitating remote sales; who rents 18
or furnishes any of the things or services taxable under this 19
chapter; or who stores for use or consumption in this state any 20
item or article of tangible personal property as defined herein 21
and who leases or rents such property within the state. 22
(1) For the exercise of such privilege, a tax is levied on 23
each taxable transaction or incident, which tax is due and 24
payable as follows: 25
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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
(i)1. At the rate of 6 percent on charges for all: 26
a. Detective, burglar protection, and other protection 27
services (NAICS National Numbers 561611, 561612, 561613, and 28
561621). However, charges for private investigations provided by 29
a small private investigati ve agency are not subject to the tax. 30
Fingerprint services required under s. 790.06 or s. 790.062 are 31
not subject to the tax. Any law enforcement officer, as defined 32
in s. 943.10, who is performing approved duties as determined by 33
his or her local law enfo rcement agency in his or her capacity 34
as a law enforcement officer, and who is subject to the direct 35
and immediate command of his or her law enforcement agency, and 36
in the law enforcement officer's uniform as authorized by his or 37
her law enforcement agency , is performing law enforcement and 38
public safety services and is not performing detective, burglar 39
protection, or other protective services, if the law enforcement 40
officer is performing his or her approved duties in a 41
geographical area in which the law en forcement officer has 42
arrest jurisdiction. Such law enforcement and public safety 43
services are not subject to tax irrespective of whether the duty 44
is characterized as "extra duty," "off -duty," or "secondary 45
employment," and irrespective of whether the offi cer is paid 46
directly or through the officer's agency by an outside source. 47
The term "law enforcement officer" includes full -time or part-48
time law enforcement officers, and any auxiliary law enforcement 49
officer, when such auxiliary law enforcement officer i s working 50
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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
under the direct supervision of a full -time or part-time law 51
enforcement officer. 52
(I) For purposes of this paragraph, the term "small 53
private investigative agency" means a person as defined in s. 54
212.02(12), licensed as a private investigative agency under s. 55
493.6201, that employs three or fewer employees that each 56
received less than $50,000 in taxable compensation during the 57
preceding calendar year for providing private investigations, as 58
that term is defined in s. 493.6101(17). 59
(II) For purposes of this paragraph, the term "employees" 60
means all full-time and part-time employees currently employed 61
by a small private investigative agency at all of its business 62
locations, wherever they are located, including any person 63
performing services for the small private investigative agency 64
under an arrangement for employee leasing as that term is 65
defined in s. 468.520(4). 66
b. Nonresidential cleaning, excluding cleaning of the 67
interiors of transportation equipment, and nonresidential 68
building pest control services (NAICS National Numbers 561710 69
and 561720). 70
2. As used in this paragraph, "NAICS" means those 71
classifications contained in the North American Industry 72
Classification System, as published in 2007 by the Office of 73
Management and Budget, Execut ive Office of the President. 74
3. Charges for detective, burglar protection, and other 75
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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
protection security services performed in this state but used 76
outside this state are exempt from taxation. Charges for 77
detective, burglar protection, and other protectio n security 78
services performed outside this state and used in this state are 79
subject to tax. 80
4. If a transaction involves both the sale or use of a 81
service taxable under this paragraph and the sale or use of a 82
service or any other item not taxable under t his chapter, the 83
consideration paid must be separately identified and stated with 84
respect to the taxable and exempt portions of the transaction or 85
the entire transaction shall be presumed taxable. The burden 86
shall be on the seller of the service or the pur chaser of the 87
service, whichever applicable, to overcome this presumption by 88
providing documentary evidence as to which portion of the 89
transaction is exempt from tax. The department is authorized to 90
adjust the amount of consideration identified as the taxa ble and 91
exempt portions of the transaction; however, a determination 92
that the taxable and exempt portions are inaccurately stated and 93
that the adjustment is applicable must be supported by 94
substantial competent evidence. 95
5. Each seller of services subjec t to sales tax pursuant 96
to this paragraph shall maintain a monthly log showing each 97
transaction for which sales tax was not collected because the 98
services meet the requirements of subparagraph 3. for out -of-99
state use. The log must identify the purchaser's name, location 100
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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
and mailing address, and federal employer identification number, 101
if a business, or the social security number, if an individual, 102
the service sold, the price of the service, the date of sale, 103
the reason for the exemption, and the sales invoic e number. The 104
monthly log shall be maintained pursuant to the same 105
requirements and subject to the same penalties imposed for the 106
keeping of similar records pursuant to this chapter. 107
Section 2. This act shall take effect July 1, 2022. 108