FL
Florida House Bill H0763

Florida 2022 Regular Session

Florida House Bill H0763 Compare Versions

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1010 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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1414 A bill to be entitled 1
1515 An act relating to tax exemption for charges for 2
16-private investigations; amending s. 212.08, F.S.; 3
17-defining the term "small private investigative 4
18-agency"; providing an exemption from the state tax on 5
19-sales, use, and other transactions for investigative 6
20-services provided by a small private investigative 7
21-agency; authorizing the Department of Revenue to adopt 8
22-emergency rules to implement the act; providing 9
23-effective dates. 10
16+private investigations; amending s. 212.05, F.S.; 3
17+providing that charges for private investigations by 4
18+private investigative agencies are not subject to the 5
19+sales and use tax; defining terms related to such 6
20+agencies and investigations; providing an effective 7
21+date. 8
22+ 9
23+Be It Enacted by the Legislature of the State of Florida: 10
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25-Be It Enacted by the Legislature of the State of Florida: 12
26- 13
27- Section 1. Paragraph (ppp) is added to subsection (7) of 14
28-section 212.08, Florida Statutes, to read: 15
29- 212.08 Sales, rental, use, consumption, distribution, and 16
30-storage tax; specified exemptions.—The sale at retail, the 17
31-rental, the use, the consumption, the distribution, and the 18
32-storage to be used or consumed in this state of the following 19
33-are hereby specifically exempt from the tax imposed by this 20
34-chapter. 21
35- (7) MISCELLANEOUS E XEMPTIONS.—Exemptions provided to any 22
36-entity by this chapter do not inure to any transaction that is 23
37-otherwise taxable under this chapter when payment is made by a 24
38-representative or employee of the entity by any means, 25
25+ Section 1. Paragraph (i) o f subsection (1) of section 12
26+212.05, Florida Statutes, is amended to read: 13
27+ 212.05 Sales, storage, use tax. —It is hereby declared to 14
28+be the legislative intent that every person is exercising a 15
29+taxable privilege who engages in the business of selling 16
30+tangible personal property at retail in this state, including 17
31+the business of making or facilitating remote sales; who rents 18
32+or furnishes any of the things or services taxable under this 19
33+chapter; or who stores for use or consumption in this state any 20
34+item or article of tangible personal property as defined herein 21
35+and who leases or rents such property within the state. 22
36+ (1) For the exercise of such privilege, a tax is levied on 23
37+each taxable transaction or incident, which tax is due and 24
38+payable as follows: 25
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4747 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-including, but not limited to, cash, check, or credit card, even 26
52-when that representative or employee is subsequently reimbursed 27
53-by the entity. In addition, exemptions provided to any entity by 28
54-this subsection do not inure to any transaction that is 29
55-otherwise taxable under this chapter unless the entity has 30
56-obtained a sales tax exemption certificate from the department 31
57-or the entity obtains or provides other documentation as 32
58-required by the department. Eligible purchases or leases made 33
59-with such a certificate must be in strict compliance with this 34
60-subsection and departmental rules, and any person who makes an 35
61-exempt purchase with a certificate that is not in strict 36
62-compliance with this subsection and the rules is liable for and 37
63-shall pay the tax. The department may adopt rules to administer 38
64-this subsection. 39
65- (ppp) Small private investigative agencies. — 40
66- 1. As used in this paragraph, the term "small private 41
67-investigative agency" means a private investigator licensed 42
68-under s. 493.6201 which: 43
69- a. Employs three or fewer full -time or part-time 44
70-employees, including those performing services pursuant to an 45
71-employee leasing arrangement as defined in s. 468.520(4), in 46
72-total; and 47
73- b. Reported less than $150,000 in taxable sales during the 48
74-previous calendar year for providing private investigative 49
75-services as defined in s. 493.6101(17) for all its businesses 50
51+ (i)1. At the rate of 6 percent on charges for all: 26
52+ a. Detective, burglar protection, and other protection 27
53+services (NAICS National Numbers 561611, 561612, 561613, and 28
54+561621). However, charges for private investigations provided by 29
55+a small private investigati ve agency are not subject to the tax. 30
56+Fingerprint services required under s. 790.06 or s. 790.062 are 31
57+not subject to the tax. Any law enforcement officer, as defined 32
58+in s. 943.10, who is performing approved duties as determined by 33
59+his or her local law enfo rcement agency in his or her capacity 34
60+as a law enforcement officer, and who is subject to the direct 35
61+and immediate command of his or her law enforcement agency, and 36
62+in the law enforcement officer's uniform as authorized by his or 37
63+her law enforcement agency , is performing law enforcement and 38
64+public safety services and is not performing detective, burglar 39
65+protection, or other protective services, if the law enforcement 40
66+officer is performing his or her approved duties in a 41
67+geographical area in which the law en forcement officer has 42
68+arrest jurisdiction. Such law enforcement and public safety 43
69+services are not subject to tax irrespective of whether the duty 44
70+is characterized as "extra duty," "off -duty," or "secondary 45
71+employment," and irrespective of whether the offi cer is paid 46
72+directly or through the officer's agency by an outside source. 47
73+The term "law enforcement officer" includes full -time or part-48
74+time law enforcement officers, and any auxiliary law enforcement 49
75+officer, when such auxiliary law enforcement officer i s working 50
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8484 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-related through common ownership. 51
89- 2. The sale of investigative services by a small private 52
90-investigative agency to a client is exempt from the tax imposed 53
91-by this chapter. 54
92- Section 2. (1) The Department of Revenue may, and all 55
93-conditions are deemed met to, adopt emergency rules pursuant to 56
94-s. 120.54(4), Florida Statutes, for the purpose of implementing 57
95-the amendment made by this act to s. 212.08, Florida Statutes. 58
96- (2) Notwithstanding any other law, emergency rules adopted 59
97-pursuant to this subsection are effective for 6 months after 60
98-adoption and may be renewed during the pendency of procedures to 61
99-adopt permanent rules addressing the subject of the emergency 62
100-rules. 63
101- (3) This section shall take e ffect upon this act becoming 64
102-a law and expires January 1, 2026. 65
103- Section 3. Except as otherwise expressly provided in this 66
104-act and except for this section, which shall take effect upon 67
105-this act becoming a law, this act shall take effect July 1, 68
106-2022. 69
88+under the direct supervision of a full -time or part-time law 51
89+enforcement officer. 52
90+ (I) For purposes of this paragraph, the term "small 53
91+private investigative agency" means a person as defined in s. 54
92+212.02(12), licensed as a private investigative agency under s. 55
93+493.6201, that employs three or fewer employees that each 56
94+received less than $50,000 in taxable compensation during the 57
95+preceding calendar year for providing private investigations, as 58
96+that term is defined in s. 493.6101(17). 59
97+ (II) For purposes of this paragraph, the term "employees" 60
98+means all full-time and part-time employees currently employed 61
99+by a small private investigative agency at all of its business 62
100+locations, wherever they are located, including any person 63
101+performing services for the small private investigative agency 64
102+under an arrangement for employee leasing as that term is 65
103+defined in s. 468.520(4). 66
104+ b. Nonresidential cleaning, excluding cleaning of the 67
105+interiors of transportation equipment, and nonresidential 68
106+building pest control services (NAICS National Numbers 561710 69
107+and 561720). 70
108+ 2. As used in this paragraph, "NAICS" means those 71
109+classifications contained in the North American Industry 72
110+Classification System, as published in 2007 by the Office of 73
111+Management and Budget, Execut ive Office of the President. 74
112+ 3. Charges for detective, burglar protection, and other 75
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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+protection security services performed in this state but used 76
126+outside this state are exempt from taxation. Charges for 77
127+detective, burglar protection, and other protectio n security 78
128+services performed outside this state and used in this state are 79
129+subject to tax. 80
130+ 4. If a transaction involves both the sale or use of a 81
131+service taxable under this paragraph and the sale or use of a 82
132+service or any other item not taxable under t his chapter, the 83
133+consideration paid must be separately identified and stated with 84
134+respect to the taxable and exempt portions of the transaction or 85
135+the entire transaction shall be presumed taxable. The burden 86
136+shall be on the seller of the service or the pur chaser of the 87
137+service, whichever applicable, to overcome this presumption by 88
138+providing documentary evidence as to which portion of the 89
139+transaction is exempt from tax. The department is authorized to 90
140+adjust the amount of consideration identified as the taxa ble and 91
141+exempt portions of the transaction; however, a determination 92
142+that the taxable and exempt portions are inaccurately stated and 93
143+that the adjustment is applicable must be supported by 94
144+substantial competent evidence. 95
145+ 5. Each seller of services subjec t to sales tax pursuant 96
146+to this paragraph shall maintain a monthly log showing each 97
147+transaction for which sales tax was not collected because the 98
148+services meet the requirements of subparagraph 3. for out -of-99
149+state use. The log must identify the purchaser's name, location 100
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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+and mailing address, and federal employer identification number, 101
163+if a business, or the social security number, if an individual, 102
164+the service sold, the price of the service, the date of sale, 103
165+the reason for the exemption, and the sales invoic e number. The 104
166+monthly log shall be maintained pursuant to the same 105
167+requirements and subject to the same penalties imposed for the 106
168+keeping of similar records pursuant to this chapter. 107
169+ Section 2. This act shall take effect July 1, 2022. 108