Florida Senate - 2015                                    SB 10-A
       
       
        
       By Senator Hukill
       
       
       
       
       
       8-00004A-15A                                           201510A__
    1                        A bill to be entitled                      
    2         An act relating to the exemption from the sales and
    3         use tax for certain machinery and equipment; amending
    4         s. 212.08, F.S.; providing that the exemption for
    5         certain mixer drums and the parts and labor required
    6         to affix such mixer drums is repealed on a specified
    7         date; deleting the expiration date for the exemption
    8         for certain industrial machinery and equipment;
    9         providing for construction of the act in pari materia
   10         with laws enacted during the 2015 Regular Session of
   11         the Legislature; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Paragraph (kkk) of subsection (7) of section
   16  212.08, Florida Statutes, is amended to read:
   17         212.08 Sales, rental, use, consumption, distribution, and
   18  storage tax; specified exemptions.—The sale at retail, the
   19  rental, the use, the consumption, the distribution, and the
   20  storage to be used or consumed in this state of the following
   21  are hereby specifically exempt from the tax imposed by this
   22  chapter.
   23         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   24  entity by this chapter do not inure to any transaction that is
   25  otherwise taxable under this chapter when payment is made by a
   26  representative or employee of the entity by any means,
   27  including, but not limited to, cash, check, or credit card, even
   28  when that representative or employee is subsequently reimbursed
   29  by the entity. In addition, exemptions provided to any entity by
   30  this subsection do not inure to any transaction that is
   31  otherwise taxable under this chapter unless the entity has
   32  obtained a sales tax exemption certificate from the department
   33  or the entity obtains or provides other documentation as
   34  required by the department. Eligible purchases or leases made
   35  with such a certificate must be in strict compliance with this
   36  subsection and departmental rules, and any person who makes an
   37  exempt purchase with a certificate that is not in strict
   38  compliance with this subsection and the rules is liable for and
   39  shall pay the tax. The department may adopt rules to administer
   40  this subsection.
   41         (kkk) Certain machinery and equipment.—
   42         1. Industrial machinery and equipment purchased by eligible
   43  manufacturing businesses which is used at a fixed location in
   44  within this state is, or a mixer drum affixed to a mixer truck
   45  which is used at any location within this state to mix, agitate,
   46  and transport freshly mixed concrete in a plastic state, for the
   47  manufacture, processing, compounding, or production of items of
   48  tangible personal property for sale shall be exempt from the tax
   49  imposed by this chapter. Parts and labor required to affix a
   50  mixer drum exempt under this paragraph to a mixer truck are also
   51  exempt. If, at the time of purchase, the purchaser furnishes the
   52  seller with a signed certificate certifying the purchaser’s
   53  entitlement to exemption pursuant to this subparagraph
   54  paragraph, the seller is relieved of the responsibility for
   55  collecting the tax on the sale of such items, and the department
   56  shall look solely to the purchaser for recovery of the tax if it
   57  determines that the purchaser was not entitled to the exemption.
   58         2. For purposes of this paragraph, the term:
   59         a. “Eligible manufacturing business” means any business
   60  whose primary business activity at the location where the
   61  industrial machinery and equipment is located is within the
   62  industries classified under NAICS codes 31, 32, and 33. As used
   63  in this subparagraph, “NAICS” means those classifications
   64  contained in the North American Industry Classification System,
   65  as published in 2007 by the Office of Management and Budget,
   66  Executive Office of the President.
   67         b. “Primary business activity” means an activity
   68  representing more than 50 fifty percent of the activities
   69  conducted at the location where the industrial machinery and
   70  equipment is located.
   71         c. “Industrial machinery and equipment” means tangible
   72  personal property or other property that has a depreciable life
   73  of 3 years or more and that is used as an integral part in the
   74  manufacturing, processing, compounding, or production of
   75  tangible personal property for sale. A building and its
   76  structural components are not industrial machinery and equipment
   77  unless the building or structural component is so closely
   78  related to the industrial machinery and equipment that it houses
   79  or supports that the building or structural component can be
   80  expected to be replaced when the machinery and equipment are
   81  replaced. Heating and air conditioning systems are not
   82  industrial machinery and equipment unless the sole justification
   83  for their installation is to meet the requirements of the
   84  production process, even though the system may provide
   85  incidental comfort to employees or serve, to an insubstantial
   86  degree, nonproduction activities. The term includes parts and
   87  accessories for industrial machinery and equipment only to the
   88  extent that the parts and accessories are purchased prior to the
   89  date the machinery and equipment are placed in service.
   90         3. A mixer drum that is affixed to a mixer truck and used
   91  at any location in this state to mix, agitate, and transport
   92  freshly mixed concrete in a plastic state for the manufacture,
   93  processing, compounding, or production of items of tangible
   94  personal property for sale is exempt from the tax imposed by
   95  this chapter. Parts and labor required to affix a mixer drum
   96  exempt under this subparagraph to a mixer truck are also exempt.
   97  If, at the time of purchase, the purchaser furnishes the seller
   98  with a signed certificate certifying the purchaser’s entitlement
   99  to exemption pursuant to this subparagraph, the seller is
  100  relieved of the responsibility for collecting the tax on the
  101  sale of such items, and the department shall look solely to the
  102  purchaser for recovery of the tax if it determines that the
  103  purchaser was not entitled to the exemption. This subparagraph
  104  paragraph is repealed April 30, 2017.
  105         Section 2. If any law amended by this act was also amended
  106  by a law enacted during the 2015 Regular Session of the
  107  Legislature, such laws shall be construed as if they had been
  108  enacted during the same session of the Legislature and full
  109  effect shall be given to each if possible.
  110         Section 3. This act shall take effect July 1, 2015.