Bill Text: FL S0686 | 2023 | Regular Session | Introduced


Bill Title: Sales Tax Exemption for Certain Investigation and Security Services

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2023-05-05 - Died in Commerce and Tourism [S0686 Detail]

Download: Florida-2023-S0686-Introduced.html
       Florida Senate - 2023                                     SB 686
       
       
        
       By Senator Brodeur
       
       
       
       
       
       10-00677-23                                            2023686__
    1                        A bill to be entitled                      
    2         An act relating to a sales tax exemption for certain
    3         investigation and security services; amending s.
    4         212.08, F.S.; exempting charges for investigation and
    5         personal background check services, security guards
    6         and patrol services, and armored car services from the
    7         sales and use tax; defining the term “NAICS”; amending
    8         ss. 212.05, 790.06, and 790.062, F.S.; conforming
    9         provisions to changes made by the act; providing an
   10         effective date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Paragraph (qqq) is added to subsection (7) of
   15  section 212.08, Florida Statutes, to read:
   16         212.08 Sales, rental, use, consumption, distribution, and
   17  storage tax; specified exemptions.—The sale at retail, the
   18  rental, the use, the consumption, the distribution, and the
   19  storage to be used or consumed in this state of the following
   20  are hereby specifically exempt from the tax imposed by this
   21  chapter.
   22         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   23  entity by this chapter do not inure to any transaction that is
   24  otherwise taxable under this chapter when payment is made by a
   25  representative or employee of the entity by any means,
   26  including, but not limited to, cash, check, or credit card, even
   27  when that representative or employee is subsequently reimbursed
   28  by the entity. In addition, exemptions provided to any entity by
   29  this subsection do not inure to any transaction that is
   30  otherwise taxable under this chapter unless the entity has
   31  obtained a sales tax exemption certificate from the department
   32  or the entity obtains or provides other documentation as
   33  required by the department. Eligible purchases or leases made
   34  with such a certificate must be in strict compliance with this
   35  subsection and departmental rules, and any person who makes an
   36  exempt purchase with a certificate that is not in strict
   37  compliance with this subsection and the rules is liable for and
   38  shall pay the tax. The department may adopt rules to administer
   39  this subsection.
   40         (qqq) Certain investigation and security services.Charges
   41  for investigation and personal background check services under
   42  NAICS code 561611, security guards and patrol services under
   43  NAICS code 561612, and armored car services under NAICS code
   44  561613 are exempt from the tax imposed by this chapter. As used
   45  in this paragraph, the term “NAICS” means those classifications
   46  contained in the North American Industry Classification System,
   47  as published in 2007 by the Office of Management and Budget,
   48  Executive Office of the President.
   49         Section 2. Paragraph (i) of subsection (1) of section
   50  212.05, Florida Statutes, is amended to read:
   51         212.05 Sales, storage, use tax.—It is hereby declared to be
   52  the legislative intent that every person is exercising a taxable
   53  privilege who engages in the business of selling tangible
   54  personal property at retail in this state, including the
   55  business of making or facilitating remote sales; who rents or
   56  furnishes any of the things or services taxable under this
   57  chapter; or who stores for use or consumption in this state any
   58  item or article of tangible personal property as defined herein
   59  and who leases or rents such property within the state.
   60         (1) For the exercise of such privilege, a tax is levied on
   61  each taxable transaction or incident, which tax is due and
   62  payable as follows:
   63         (i)1. At the rate of 6 percent on charges for all:
   64         a. Security systems Detective, burglar protection, and
   65  other protection services (NAICS code National Numbers 561611,
   66  561612, 561613, and 561621). Fingerprint services required under
   67  s. 790.06 or s. 790.062 are not subject to the tax. Any law
   68  enforcement officer, as defined in s. 943.10, who is performing
   69  approved duties as determined by his or her local law
   70  enforcement agency in his or her capacity as a law enforcement
   71  officer, and who is subject to the direct and immediate command
   72  of his or her law enforcement agency, and in the law enforcement
   73  officer’s uniform as authorized by his or her law enforcement
   74  agency, is performing law enforcement and public safety services
   75  and is not performing security systems detective, burglar
   76  protection, or other protective services, if the law enforcement
   77  officer is performing his or her approved duties in a
   78  geographical area in which the law enforcement officer has
   79  arrest jurisdiction. Such law enforcement and public safety
   80  services are not subject to tax irrespective of whether the duty
   81  is characterized as “extra duty,” “off-duty,” or “secondary
   82  employment,” and irrespective of whether the officer is paid
   83  directly or through the officer’s agency by an outside source.
   84  The term “law enforcement officer” includes full-time or part
   85  time law enforcement officers, and any auxiliary law enforcement
   86  officer, when such auxiliary law enforcement officer is working
   87  under the direct supervision of a full-time or part-time law
   88  enforcement officer.
   89         b. Nonresidential cleaning, excluding cleaning of the
   90  interiors of transportation equipment, and nonresidential
   91  building pest control services (NAICS National Numbers 561710
   92  and 561720).
   93         2. As used in this paragraph, the term “NAICS” means those
   94  classifications contained in the North American Industry
   95  Classification System, as published in 2007 by the Office of
   96  Management and Budget, Executive Office of the President.
   97         3. Charges for detective, burglar protection, and other
   98  protection security systems services performed in this state but
   99  used outside this state are exempt from taxation. Charges for
  100  detective, burglar protection, and other protection security
  101  systems services performed outside this state and used in this
  102  state are subject to tax.
  103         4. If a transaction involves both the sale or use of a
  104  service taxable under this paragraph and the sale or use of a
  105  service or any other item not taxable under this chapter, the
  106  consideration paid must be separately identified and stated with
  107  respect to the taxable and exempt portions of the transaction or
  108  the entire transaction is shall be presumed taxable. The burden
  109  is shall be on the seller of the service or the purchaser of the
  110  service, whichever applicable, to overcome this presumption by
  111  providing documentary evidence as to which portion of the
  112  transaction is exempt from tax. The department is authorized to
  113  adjust the amount of consideration identified as the taxable and
  114  exempt portions of the transaction; however, a determination
  115  that the taxable and exempt portions are inaccurately stated and
  116  that the adjustment is applicable must be supported by
  117  substantial competent evidence.
  118         5. Each seller of services subject to sales tax pursuant to
  119  this paragraph shall maintain a monthly log showing each
  120  transaction for which sales tax was not collected because the
  121  services meet the requirements of subparagraph 3. for out-of
  122  state use. The log must identify the purchaser’s name, location
  123  and mailing address, and federal employer identification number,
  124  if a business, or the social security number, if an individual,
  125  the service sold, the price of the service, the date of sale,
  126  the reason for the exemption, and the sales invoice number. The
  127  monthly log shall be maintained pursuant to the same
  128  requirements and subject to the same penalties imposed for the
  129  keeping of similar records pursuant to this chapter.
  130         Section 3. Paragraph (c) of subsection (5) of section
  131  790.06, Florida Statutes, is amended to read:
  132         790.06 License to carry concealed weapon or firearm.—
  133         (5) The applicant shall submit to the Department of
  134  Agriculture and Consumer Services or an approved tax collector
  135  pursuant to s. 790.0625:
  136         (c) A full set of fingerprints of the applicant
  137  administered by a law enforcement agency or the Division of
  138  Licensing of the Department of Agriculture and Consumer Services
  139  or an approved tax collector pursuant to s. 790.0625 together
  140  with any personal identifying information required by federal
  141  law to process fingerprints. Charges for fingerprint services
  142  under this paragraph are not subject to the sales tax on
  143  fingerprint services imposed in s. 212.05(1)(i).
  144         Section 4. Subsection (2) of section 790.062, Florida
  145  Statutes, is amended to read:
  146         790.062 Members and veterans of United States Armed Forces;
  147  exceptions from licensure provisions.—
  148         (2) The Department of Agriculture and Consumer Services
  149  shall accept fingerprints of an applicant under this section
  150  administered by any law enforcement agency, military provost, or
  151  other military unit charged with law enforcement duties or as
  152  otherwise provided for in s. 790.06(5)(c). Charges for
  153  fingerprint services under this subsection are not subject to
  154  the sales tax on fingerprint services imposed in s.
  155  212.05(1)(i).
  156         Section 5. This act shall take effect July 1, 2023.

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