Title: Exemption from the Sales and Use Tax for Certain Machinery and Equipment

Summary: Repeals exemption for certain mixer drums & parts & labor required to affix such mixer drums to mixer trucks on specified date; deletes expiration date for exemption for certain industrial machinery & equipment.

Full Text:
An act relating to the exemption from the sales and use tax for certain machinery and equipment; amending s. 212.08, F.S.; providing that the exemption for certain mixer drums and the parts and labor required to affix such mixer drums to mixer trucks is repealed on a specified date; deleting the expiration date for the exemption for certain industrial machinery and equipment; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (kkk) of subsection (7) of section 212.08, Florida Statutes, is amended to read: 212.08 Sales, rental, use, consumption, distribution, and storage tax; specified exemptions.-The sale at retail, the rental, the use, the consumption, the distribution, and the storage to be used or consumed in this state of the following are hereby specifically exempt from the tax imposed by this chapter. (7) MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any entity by this chapter do not inure to any transaction that is otherwise taxable under this chapter when payment is made by a representative or employee of the entity by any means, including, but not limited to, cash, check, or credit card, even when that representative or employee is subsequently reimbursed HB 2016 by the entity. In addition, exemptions provided to any entity by this subsection do not inure to any transaction that is otherwise taxable under this chapter unless the entity has obtained a sales tax exemption certificate from the department or the entity obtains or provides other documentation as required by the department. Eligible purchases or leases made with such a certificate must be in strict compliance with this subsection and dep artmental rules, and any person who makes an exempt purchase with a certificate that is not in strict compliance with this subsection and the rules is liable for and shall pay the tax. The department may adopt rules to administer this subsection. (kkk) Certain machinery and equipment.-1. Industrial machinery and equipment purchased by eligible manufacturing businesses which is used at a fixed location in within this state,or a mixer drum affixed to a mixer truck which is used at any location within th is state to mix, agitate, and transport freshly mixed concrete in a plastic state, for the manufacture, processing, compounding, or production of items of tangible personal property for sale shall be exempt from the tax imposed by this chapter. Parts and labor required to affix a mixer drum exempt under this paragraph to a mixer truck are also exempt. If, at the time of purchase,the purchaser furnishes the seller with a signed certificate certifying the purchaser's entitlement to exemption pursuant to this subparagraph paragraph,the seller is relieved of the HB 2016 responsibility for collecting the tax on the sale of such items, and the department shall look solely to the purchaser for recovery of the tax if it determines that the purchaser was not entitled to th eexemption. 2. For purposes of this paragraph, the term: a. "Eligible manufacturing business" means any business whose primary business activity at the location where the industrial machinery and equipment is located is within the industries classifie dunder NAICS codes 31, 32, and 33. As used in this subparagraph, "NAICS" means those classifications contained in the North American Industry Classification System, as published in 2007 by the Office of Management and Budget, Executive Office of the Presi dent. b. "Primary business activity" means an activity representing more than percent of the activities conducted at the location where the industrial machinery and equipment is located. c. "Industrial machinery and equipment" means tangible personal property or other property that has a depreciable life of years or more and that is used as an integral part in the manufacturing, processing, compounding, or production of tangible personal property for sale. A building and its structural components a re not industrial machinery and equipment unless the building or structural component is so closely related to the industrial machinery and equipment that it houses or supports that the building or structural component can be HB 2016 expected to be replaced when the machinery and equipment are replaced. Heating and air conditioning systems are not industrial machinery and equipment unless the sole justification for their installation is to meet the requirements of the production process, even though the system may provide incidental comfort to employees or serve, to an insubstantial degree, nonproduction activities. The term includes parts and accessories for industrial machinery and equipment only to the extent that the parts and accessories are purchased prior to the date the machinery and equipment are placed in service. 3. A mixer drum affixed to a mixer truck which is used at any location in this state to mix, agitate, and transport freshly mixed concrete in a plastic state for the manufacture, processing, com pounding, or production of items of tangible personal property for sale shall be exempt from the tax imposed by this chapter. Parts and labor required to affix a mixer drum exempt under this subparagraph to a mixer truck are also exempt. If, at the time of purchase,the purchaser furnishes the seller with a signed certificate certifying the purchaser's entitlement to exemption pursuant to this subparagraph, the seller is relieved of the responsibility for collecting the tax on the sale of such items, and th edepartment shall look solely to the purchaser for recovery of the tax if it determines that the purchaser was not entitled to the exemption. This subparagraph paragraph is repealed April 30, 2017. Section 2. This act shall take effect July 1, 2016.