R. 11/17

POST-Legislative

REVIEW

2017

Changes to Florida Tax and Child Support Laws

R. 11/17

The Florida Department of Revenue (Department) compiled this Post-Legislative Review to provide information about general laws enacted by the Florida Legislature during the 2017 Legislative Session and 2017A Special Session. Use this booklet for reference only. The discussion of each item is brief and may not include every detail of the law that could affect a particular taxpayer or customer. Before applying the changes to a specific decision on taxes or child support, please review the applicable statute or Department rule. For current statutes, please visit the Florida Legislature’s website at www.leg.state.fl.us. If you have questions about tax issues, you may call Taxpayer Services at 800-352-3671, or you may request a written response to a tax question by writing to Taxpayer Services, Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. For additional information about the Department, please visit our website at: http://floridarevenue.com. We hope you find this information useful. We welcome your comments and suggestions. Please write to our Office of Legislative and Cabinet Services at Post Office Box 5906, Tallahassee, Florida 32314-5906, or email Jamie.Peate@floridarevenue.com.

Executive Director Leon M. Biegalski

Child Support Ann Coffin Director

General Tax Administration Maria Johnson Director

Property Tax Oversight Dr. Maurice Gogarty Director

Information Services Damu Kuttikrishnan Director

Florida Department of Revenue Tallahassee, Florida 32399-0100 http://dor.myflorida.com/dor/

TABLE OF CONTENTS Electronic version offers active content links.

CHILD SUPPORT ......................................................................................................................................................1

➢ Parenting Time Plans .....................................................................................................................................1

CORPORATE INCOME TAX .....................................................................................................................................1

➢ Adoption of the 2017 U.S. Internal Revenue Code ........................................................................................1 ➢ Community Contribution Tax Credits ..............................................................................................................1 ➢ Contaminated Site Rehabilitation Tax Credit..................................................................................................2 ➢ Filing and Payment Dates Related to Corporate Income Tax ........................................................................2 ➢ Research and Development Tax Credit .........................................................................................................2

FUEL TAX ..................................................................................................................................................................2

➢ Elimination of Application License Tax ...........................................................................................................2 ➢ Elimination of Application and Renewal License Fee .....................................................................................3 ➢ Elimination of Proof of Payment of Application License Tax ..........................................................................3 ➢ Elimination of Refund Fee ..............................................................................................................................3

GROSS RECEIPTS OF DRYCLEANING FACILITIES .............................................................................................3

➢ Elimination of Drycleaning Facilities Registration Fee ...................................................................................3 ➢ Elimination of Production or Importation of Perchloroethylene Registration Fee ...........................................4

PROPERTY TAX OVERSIGHT .................................................................................................................................4

➢ Affordable Housing Agreements .....................................................................................................................4 ➢ Assisted Living Facilities .................................................................................................................................4 ➢ Charter Schools ..............................................................................................................................................5 ➢ Homes for the Aged ........................................................................................................................................5 ➢ Increased Homestead Exemption Amendment ..............................................................................................5 ➢ Increased Homestead Exemption Amendment Implementation ....................................................................5 ➢ Inventory Definition .........................................................................................................................................6 ➢ Limitations on Property Tax Assessments .....................................................................................................6 ➢ Renewable Energy Source Devices ...............................................................................................................7 ➢ Tax Exemptions for First Responders and Surviving Spouses ......................................................................8

SALES AND USE TAX ..............................................................................................................................................8

➢ Animal Health Products ..................................................................................................................................8 ➢ Back-to-School Sales Tax Holiday .................................................................................................................9 ➢ Community Contribution Tax Credit for Donations ...................................................................................... 10 ➢ Data Center Property ................................................................................................................................... 10 ➢ Direct Payment by Municipally Owned Golf Course Operators ................................................................... 11 ➢ Disaster Preparedness Supplies Sales Tax Holiday ................................................................................... 11 ➢ Elimination of Registration Fees .................................................................................................................. 12 ➢ Fingerprint Services ..................................................................................................................................... 12 ➢ Mail-order Registration ................................................................................................................................ 12 ➢ New Construction Located in Rural Area of Opportunity ............................................................................. 12 ➢ Products That Absorb Menstrual Flow ........................................................................................................ 13 ➢ Reduction of the Tax Rate for the Lease, Rental, or License to Use Real Property ................................... 13 ➢ Resale of Admissions to an Exempt Entity .................................................................................................. 13 ➢ Vending Machine Notices ............................................................................................................................ 14

TAX ADMINISTRATION ......................................................................................................................................... 14

➢ Clerk of Court Charges for the Dissolution of Marriage ............................................................................... 14 ➢ Clerk of Court Marriage License Fees ......................................................................................................... 14 ➢ Disposition of Civil Penalties by County Courts .......................................................................................... 15 ➢ Executive Steering Committee for Replacement of Florida Accounting Information Resource (FLAIR)

Subsystem ................................................................................................................................................... 15 ➢ Filing Fees for Trial and Appellate Proceedings, Fines ............................................................................... 15 ➢ Florida Endowment for Vocational Rehabilitation ........................................................................................ 16 ➢ Professional Golf Hall of Fame Facility ........................................................................................................ 16 ➢ Transfers to Shared County/State Juvenile Detention Trust Fund .............................................................. 16

Abbreviations used in this publication:

Ch. – Chapter Chs. – Chapters Clerk – Clerk of the Court CS – Committee Substitute

Eng. – Engrossed F.S. – Florida Statutes HB – House Bill HJR – House Joint Resolution SB – Senate Bill s. – section ss. – sections

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CHILD SUPPORT

➢ Parenting Time Plans Effective Date: January 1, 2018 Statute Reference: Sections 409.2551, 409.2554, 409.2557, 409.256, 409.2563, 409.25633,

409.2564, and 409.2572, Florida Statutes Chapter Law: 2017-117 (CS/CS/SB 590) Creates the Title IV-D Standard Parenting Time Plan that may be used by parents. Effective January 2018, the Department is directed to include parenting time plans that are agreed to and signed by both parents when administratively establishing paternity or establishing or modifying administrative child support orders, as well as, during judicial child support enforcement actions. If both parents do not agree to a parenting time plan, an order concerning only paternity or child support is entered and the parents are referred to court for any parenting time issues. The Department is not authorized to enforce or modify parenting time plans. Either parent may seek to establish, modify or enforce parenting time in court. By December 31, 2018, the Department shall report to the Governor, the President of the Senate, and the Speaker of the House of Representatives on implementation status and provide recommendations to facilitate further implementation.

CORPORATE INCOME TAX

➢ Adoption of the 2017 U.S. Internal Revenue Code Effective Date: June 2, 2017 (Retroactive to January 1, 2017) Statute Reference: Sections 220.03(1)(n) and (2)(c), F.S. Chapter Law: 2017-67 (HB 7099, 2nd Eng.) Updates the references in the Florida Income Tax Code to conform to the United States Internal Revenue Code (IRC) in effect on January 1, 2017.

➢ Community Contribution Tax Credits Effective Date: July 1, 2017 Statute Reference: Sections 220.03, 212.08, and 624.5105, F.S. Chapter Law: Sections 30 and 31, 2017-36 (HB 7109, 2nd Eng.) Sections 220.03 and 220.183, F.S., are amended to strike the expiration provisions of the Community Contribution Tax Credit, allowing the credit to remain in effect indefinitely. Further amendments to s. 220.183, F.S., authorize the Department of Economic Opportunity to grant $21.4 million of Community Contribution Tax Credit for the 2017-18 fiscal year, and $10.5 million in each subsequent fiscal year, under ss. 212.08(5)(p), 220.183, and 624.5105, F.S., for projects that provide specified housing opportunities.

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➢ Contaminated Site Rehabilitation Tax Credit Effective Date: July 1, 2017 Statute Reference: Sections 220.1845 and 376.30781, F.S. Chapter Law: Sections 32 and 41, 2017-36 (HB 7109, 2nd Eng.) Sections 220.196 and 376.30781, F.S., are amended to increase the amount of Contaminated Site Rehabilitation Tax Credit that the Department of Environmental Protection is authorized to grant each fiscal year from $5 million to $10 million.

➢ Filing and Payment Dates Related to Corporate Income Tax Effective Date: June 2, 2017 (Retroactive to taxable years beginning on or after January

1, 2016) Statute Reference: Sections 220.222 and 220.33, F.S. Chapter Law: 2017-67 (HB 7099, 2nd Eng.); Section 34, 2017-36 (HB 7109, 2nd Eng.) Modifies filing, payment, and extension to file dates for Florida Corporate and Partnership Returns to correspond with federal filing dates. Amends s. 220.33, F.S., to provide that an estimated payment that would otherwise be due on the last Saturday or Sunday of June must be paid on or before the last Friday of June to be considered timely.

➢ Research and Development Tax Credit Effective Date: July 1, 2017 Statute Reference: Section 220.196, F.S. Chapter Law: Section 33, 2017-36 (HB 7109, 2nd Eng.) Amends s. 220.196, F.S., to provide that the total amount of research and development tax credits that may be granted to all business enterprises in the 2018 calendar year is $16.5 million.

FUEL TAX

➢ Elimination of Application License Tax Statute Reference: Sections 206.02, 206.021, 206.022, 206.03, 206.045, 206.9865, and

206.9943, F.S. Chapter Law: Sections 9–13 and 16–18, 2017-36 (HB 7109, 2nd Eng.) Amends cited sections of Ch. 206, F.S., eliminating the $30 application and annual renewal license tax required from blenders, biodiesel manufacturers, carriers, commercial air carriers, exporters, importers, pollutants applicants, terminal operators, terminal supporters and wholesalers.

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➢ Elimination of Application and Renewal License Fee Effective Date: January 1, 2018 Statute Reference: Section 206.9952(9), F.S. Chapter Law: Section 18, 2017-36 (HB 7109, 2nd Eng.) Amends s. 206.9952, F.S., eliminating the $5 application and annual renewal fee required for the issuance of a natural gas fuel retailer license.

➢ Elimination of Proof of Payment of Application License Tax Effective Date: January 1, 2018 Statute Reference: Sections 206.405 and 206.406, F.S. Chapter Law: Section 14, 2017-36 (HB 7109, 2nd Eng.) Repeals s. 206.405, F.S., to remove the Department’s requirement to provide proof of receipt of an applicant’s payment of the $30 application and annual renewal license tax. Repeals s. 206.406, F.S., to remove disposition of license tax funds into the General Revenue Fund.

➢ Elimination of Refund Fee Effective Date: January 1, 2018 Statute Reference: Section 206.41(5)(c), F.S. Chapter Law: Section 15, 2017-36 (HB 7109, 2nd Eng.) Amends s. 206.41(5)(c), F.S., eliminating the deduction of a $2 refund filing fee from refunds of motor fuel tax.

GROSS RECEIPTS OF DRYCLEANING FACILITIES

➢ Elimination of Drycleaning Facilities Registration Fee Effective Date: July 1, 2017 Statute Reference: Section 376.70, F.S. Chapter Law: Section 42, 2017-36 (HB 7109, 2nd Eng.) Amends s. 376.70, F.S., to eliminate the $30 registration fee previously required of registrants that operate drycleaning facilities in Florida.

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➢ Elimination of Production or Importation of Perchloroethylene Registration Fee Effective Date: July 1, 2017 Statute Reference: Sections 376.75, F.S. Chapter Law: Section 43, 2017-36 (HB 7109, 2nd Eng.) Amends s. 376.75, F.S., to eliminate the $30 registration fee for registrants that produce, import or sell perchloroethylene in Florida.

PROPERTY TAX OVERSIGHT

➢ Affordable Housing Agreements Effective Date: January 1, 2018 Statute Reference: Section 196.1978, F.S. Chapter Law: Section 6, 2017-36 (HB 7109) Amends s. 196.1978, F.S., to provide that, notwithstanding ss. 196.195 and 196.196, F.S., property in a multifamily project that meets certain requirements is property used for a charitable purpose. The property will receive a 50% discount from the amount of ad valorem tax otherwise owed beginning in the 16th year of the term of the recorded agreement on those portions of the affordable housing property that provide housing to natural persons or families meeting the extremely low-income, very low-income, or low-income limits. The multifamily project must contain more than 70 units that provide affordable housing to natural persons or families meeting the income limits and be subject to an agreement with the Florida Housing Finance Corporation. This agreement must be recorded in the official records of the county in which the property is located. This discount terminates if the property no longer serves extremely low-income, very low-income, or low-income persons under the recorded agreement. To receive the discount under s. 196.1975(2)(a), F.S., a qualified applicant must submit the application to the county property appraiser by March 1. The property appraiser will apply the discount by reducing the taxable value on those portions of the affordable housing property that provide housing to natural persons or families meeting those low-income limits before certifying the tax roll to the tax collector. The property appraiser will first ascertain all other applicable exemptions, including exemptions under a local option, and deduct all other exemptions from the assessed value. The property appraiser will subtract 50% of the remaining value to yield the discounted taxable value. The certification will include the resulting taxable value for taxing authorities to use in setting millage. The property appraiser will place the discounted amount on the tax roll when it is extended.

➢ Assisted Living Facilities Effective Date: May 25, 2017 Statute Reference: Section 196.012, F.S. Chapter Law: Sections 3 and 4, 2017-36 (HB 7109)

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Amends s. 196.012(9), F.S., to add that the definition of “nursing home” or “home for special services” is a licensed assisted living facility under Ch. 429, Part I, F.S. This section of the law first applies to the 2017 tax roll.

➢ Charter Schools Effective Date: May 25, 2017 (Retroactive to January 1, 2017) Statute Reference: Section 196.1983, F.S. Chapter Law: Sections 7 and 55, 2017-36 (HB 7109) Amends s. 196.1983, F.S., to clarify that an ad valorem tax exemption applies when a charter school makes a payment directly to a third party and deletes the explicit requirement that the landlord adjust the lease payment. States that an educational institution that leased a facility that was exempt from ad valorem tax under s. 196.1983, F.S., for the 2015 tax roll and purchased the facility may apply for the educational exemption for the 2016 tax roll by filing an application by August 1, 2017.

➢ Homes for the Aged Effective Date: July 1, 2017 Statute Reference: Section 196.1975, F.S. Chapter Law: Section 5, 2017-36 (HB 7109) Adds subsection (4)(c) to s. 196.1975, F.S., to require each not-for-profit corporation applying for an exemption under s. 196.1975(a), F.S., to file with its annual application for exemption an affidavit from each person who occupies a unit or apartment. The affidavit must state the person’s income. The property appraiser may request additional documentation proving the person’s income.

➢ Increased Homestead Exemption Amendment Effective Date: If voters approve the amendment, effective January 1, 2019. Statute Reference: Section 6, Article VII, and Section 37, Article XII, Florida Constitution Chapter Law: N/A (HJR 7105) Proposes a constitutional amendment to Section 6 of Article VII and the creation of Section 37 of Article XII, to increase the homestead exemption by exempting the assessed value of homestead property greater than $100,000 and up to $125,000 for all levies other than school district levies that shall take effect January 1, 2019.

➢ Increased Homestead Exemption Amendment Implementation Effective Date: If voters approve the amendment in HJR 7105, effective January 1, 2019 Statute Reference: Sections 196.031, 200.065, and 218.125, F.S.

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Chapter Law: Chapter 2017-35 (HB 7107) Implements the proposed constitutional amendment in HJR 7105 by exempting the assessed value of a homestead parcel between $100,000 and up to $125,000 from all taxes other than school district taxes. This act will take effect on the effective date of the amendment to the Florida Constitution or a similar joint resolution having substantially the same specific intent and purpose, if approved by voters at the November 2018 general election and shall apply to the 2019 tax roll. Requires increasing the taxable value used to compute the rolled-back rate in s. 200.065(1), F.S., and the maximum millage rate under s. 200.065(5), F.S., by an amount equal to the reduction in taxable value. Under the new subsection, the taxable value will be based on value as of January 1, 2019, in each taxing authority. Beginning in the 2019-20 fiscal year, the Legislature will appropriate funds to offset reductions in ad valorem tax revenue experienced directly by fiscally constrained counties because of the increased homestead exemption. These appropriated funds will be distributed in January of each fiscal year among the fiscally constrained counties based on each county's proportion of the total reduction in ad valorem tax revenue resulting from the revisions. Under s. 218.125(2)(b), F.S., the calculation for each fiscally constrained county's reduction in ad valorem tax revenue will be 95% of the estimated reduction in taxable value multiplied by the lesser of the 2017 applicable millage rate or the applicable millage rate for each county taxing jurisdiction in the current year. If a fiscally constrained county fails to apply for the distribution, its share will revert to the fund from which the Legislature made the appropriation.

➢ Inventory Definition Effective Date: July 1, 2017 Statute Reference: Section 192.001, F.S. Chapter Law: Section 2, 2017-36 (HB 7109) Amends s. 192.001(11), F.S., to add that “inventory” also means construction and agricultural equipment weighing 1,000 pounds or more that is returned to a dealership under a rent-to-purchase option and held for sale to customers in the ordinary course of business.

➢ Limitations on Property Tax Assessments Effective Date: If voters approve the amendment, effective January 1, 2019 Statute Reference: Section 27, Article XII, Florida Constitution Chapter Law: N/A (CS/HJR 21) Proposes an amendment to the Florida Constitution to remove the scheduled January 1, 2019 repeal of the 10% assessment limitation for all levies other than school district levies on certain non-homestead, residential real property and certain other nonresidential real property. The amendment to subsection (a) of Article XII, Section 27, abrogating the scheduled repeal of subsections (g) and (h) of Article VII, Section 4 of the Florida Constitution as it existed in 2017 will be effective January 1, 2019.

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➢ Renewable Energy Source Devices Effective Date: January 1, 2018 Statute Reference: Sections 193.624 and 196.182, F.S. Chapter Law: Sections 2 and 3, 2017-118 (CS/SB 90) In August 2016, voters approved Amendment 4 that authorizes the Legislature to exempt the assessed value of solar or renewable energy source devices subject to tangible personal property tax and to prohibit consideration of solar or renewable energy source devices in assessing the value of real property for ad valorem taxation purposes, as specified by general law: - Amends s. 193.624(1)(i), F.S., to include wiring, structural supports, and other components

that are integral parts of these systems. It specifies that this does not include any equipment or structure that would be required in the absence of the renewable energy source device.

- Amends s. 193.624(1)(l) and (m), F.S., to include power conditioning and storage devices

that store or use solar energy, or energy derived from geothermal deposits to generate electricity or mechanical forms of energy. It adds that renewable energy source devices do not include any equipment that is on the distribution or transmission side of the point of interconnection where a renewable energy source device is interconnected to an electric utility’s distribution grid or transmission lines.

- Creates s. 193.624(2)(b), F.S., to prohibit the consideration of the just value of property

attributable to a renewable energy source device when determining the assessed value of any residential property and to prohibit the consideration of 80% of the just value of property attributable to a renewable energy source device when determining the assessed value of any non-residential property.

- Amends s. 193.624(3), F.S., to add that this applies to a renewable energy source device

installed on or after January 1, 2018, to all other real property, except when installed as part of a project planned for a location in a fiscally constrained county as defined in s. 218.67(1), F.S., and an application for a comprehensive plan amendment or planned unit development zoning has been filed with the county on or before December 31, 2017.

- Creates s. 196.182(1), F.S., to provide that 80% of the assessed value of a renewable energy

source device, defined in s. 193.624, F.S., which the property appraiser considers to be tangible personal property (TPP) is exempt if the renewable energy source device:

• Is installed on real property on or after January 1, 2018;

• Was installed before January 1, 2018, to supply a municipal electric utility located within a consolidated government; or

• Was installed after August 30, 2016, on municipal land as part of a project incorporating other renewable energy source devices under common ownership on municipal land for the sole purpose of supplying a municipal electric utility with at least two megawatts and no more than five megawatts of alternating current power when the renewable energy source devices in the project are used together.

- Provides that the TPP exemption does not apply when installed as part of a project planned

for a location in a fiscally constrained county as defined in s. 218.67(1), F.S., and an application for a comprehensive plan amendment or planned unit development zoning has been filed with the county on or before December 31, 2017.

- Provides that 80% of the assessed value of a renewable energy source device, defined in s.

193.624, F.S., that is affixed to property owned or leased by the U.S. Department of Defense

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for the military is exempt from ad valorem taxation, including, but not limited to, the tangible personal property tax.

- Provides a December 31, 2037, expiration date.

➢ Tax Exemptions for First Responders and Surviving Spouses Effective Date: June 14, 2017, (Retroactive to January 1, 2017) Statute Reference: Sections 196.011 and 196.102, F.S. Chapter Law: 2017-105 (CS/CS/HB 455) Amendment 3 was approved by the voters in the 2016 General Election allowing the Legislature to provide ad valorem tax relief on homestead property for a first responder who is totally and permanently disabled as a result of an injury sustained in the line of duty.

Creates s. 196.102, F.S., which exempts from taxation any real estate that is owned and used as a homestead by a person who has a total and permanent disability as a result of an injury or injuries sustained in the line of duty while serving as a first responder in this state or during an operation in another state or country authorized by this state or a political subdivision of this state. The first responder must be a permanent resident of this state on January 1 of the year for which he or she is claiming the exemption. Specifies the documents required to apply for this exemption. These documents include certification from the organization employing the applicant when the injury occurred; a letter of total and permanent disability from the Social Security Administration; and certification from a licensed Florida physician. If the letter of total and permanent disability from the Social Security Administration cannot be provided, the applicant may provide documentation from the Social Security Administration stating that the applicant is not eligible to receive a medical status determination from the Social Security Administration, and provide an additional physician certification from two professionally unrelated physicians. Provides authorization for the exemption to carry over to the benefit of the disabled first responder’s surviving spouse as long as he or she holds legal or beneficial title to the homestead, permanently resides there, and does not remarry. Allowed for an extended filing period until August 1, 2017, for the 2017 tax year. Provides an appeals process through the value adjustment board if a property appraiser denies an application for the exemption. Adds a reference to the new exemption in the list of exemptions to be included on the application form.

SALES AND USE TAX

➢ Animal Health Products Effective Date: July 1, 2017 Statute Reference: Section 212.08(5)(a), F.S.

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Chapter Law: Section 26, 2017-36 (HB 7109, 2nd Eng.) Provides an exemption for animal health products that are administered to, applied to, or consumed by livestock or poultry to alleviate pain or cure or prevent sickness, disease, or suffering, including, but not limited to, antiseptics, absorbent cotton, gauze for bandages, lotions, vaccines, vitamins, and worm remedies; and aquaculture health products that are used by aquaculture producers, as defined in s. 597.0015, F.S., to prevent or treat fungi, bacteria, and parasitic diseases.

➢ Back-to-School Sales Tax Holiday Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 52, 2017-36 (HB 7109, 2nd Eng.) Exempts, during the period from 12:01 a.m., August 4, 2017, through 11:59 p.m., August 6, 2017, sales of clothing, wallets, or bags having a selling price of $60 or less per item; sales of school supplies having a selling price of $15 or less per item, and personal computers and certain computer-related accessories, selling for $750 or less per item, when purchased for noncommercial home or personal use. The law defines “clothing” as any article of wearing apparel, including all footwear except skis, swim fins, roller blades, and skates, intended to be worn on or about the human body. Excludes watches, watchbands, jewelry, umbrellas, and handkerchiefs. The law defines “school supplies” as pens, pencils, erasers, crayons, notebooks, notebook filler paper, legal pads, binders, lunch boxes, construction paper, markers, folders, poster board, composition books, poster paper, scissors, cellophane tape, glue or paste, rulers, computer disks, protractors, compasses, and calculators. The law provides that “personal computers” includes electronic book readers, laptops, desktops, handhelds, tablets, and tower computers. The term does not include cellular telephones, video game consoles, digital media receivers, or devices that are not primarily designed to process data. The law provides that “personal computer-related accessories” includes keyboards, mice (mouse devices), personal digital assistants, monitors, other peripheral devices, modems, routers, and nonrecreational software, regardless of whether the accessories are used in association with a personal computer base unit. Computer-related accessories do not include furniture or systems, devices, software, or peripherals that are designed or intended primarily for recreational use. The term “monitor” does not include a device that includes a television tuner. These exemptions do not apply to sales made within a theme park or entertainment complex, a public lodging establishment, or an airport. Provides that a business which has less than 5% revenue from the exempted items may elect not to participate in the holiday. If opting out, a dealer must notify the Department of Revenue in writing of that election by August 1, 2017, and must post a copy of that notice in a conspicuous location at its place of business. Authorizes the Department to adopt emergency rules to administer the sales tax holiday.

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➢ Community Contribution Tax Credit for Donations Effective Date: July 1, 2017 Statute Reference: Section 212.08(5)(p), F.S. Chapter Law: Section 26, 2017-36 (HB 7109, 2nd Eng.)

Sub-subparagraph 212.08(5)(p)1e, F.S., is amended to authorize the Department of Environmental Protection to grant $21.4 million of Community Contribution Tax Credit for the 2017-18 fiscal year, and $10.5 million in each subsequent fiscal year, under ss. 212.08(5)(p), 220.183, and 624.5105, F.S., for projects that provide specified housing opportunities. Subparagraph 212.08(5)(p)5., F.S., is struck to remove the expiration provision of the Community Contribution Tax Credit, allowing the credit to remain in effect indefinitely.

➢ Data Center Property Effective Date: July 1, 2017 Statute Reference: Section 212.08(5)(s), F.S. Chapter Law: Section 26, 2017-36 (HB 7109, 2nd Eng.) Provides for a permanent sales tax exemption for purchases of data center property by qualifying applicants that apply for and receive approval from the Department during the period of July 1, 2017, through July 1, 2022. The opportunity to apply for and receive a tax exemption certificate will not be available to new applicants after July 1, 2022. Approved applicants that continue to meet statutory requirements will continue to receive the exemption beyond July 1, 2022. Requirements include:

• The data center owners and tenants must make a cumulative capital investment of $150 million or more within five years after the commencement of the construction of the data center, as certified by a CPA;

• Within five years after the commencement of the construction of the data center, it will have a critical IT load of 15 megawatts or more, as certified by a professional engineer, licensed under Ch. 471; and

• Within five years after the commencement of the construction of the data center, it will have a critical IT load of one megawatt or more per individual owner or tenant, as certified by a professional engineer, licensed under Ch. 471.

The law defines “data center property” as property used exclusively at a data center to construct, equip, operate, support, power, cool, dehumidify, secure, or protect a data center. Data centers must apply to the Department for a temporary tax exemption permit to receive the exemption. The application must include documentation showing how the data center will meet all requirements for the exemption. When the Department determines that the requirements have been met, the Department will issue a temporary tax exemption permit. Once the data center fulfills all of the requirements for the exemption, the data center must apply to the Department for a permanent sales tax exemption certificate. Once the Department determines all conditions have been met, a permanent sales tax exemption certificate is to be issued. The Department must review and confirm that the data center continues to meet all requirements every five years from the date of the issuance of the permanent certificate. If the Department determines during an audit that a data center, owner, tenant, contractor, or other person using a

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certificate did not qualify for the exemption, that person will immediately owe the taxes exempted in error, along with interest and penalty. Each user of the temporary permit or permanent exemption certificate must provide a copy of the permit/certificate to the seller at the time of sale.

➢ Direct Payment by Municipally Owned Golf Course Operators Effective Date: July 1, 2017 Statute Reference: Section 212.06, F.S. Chapter Law: Section 26, 2017-36 (HB 7109, 2nd Eng.) Amends s. 212.08(6), F.S., to provide that payments made for the purchase or lease of items used for the operation or maintenance of a municipally owned golf course by an entity under contract with a municipality to maintain or operate a municipally owned golf course are considered to be made directly by the municipality when the following requirements are met:

• Payment is made from golf course revenues or other funds provided by the municipality for use by the operator under contract;

• The municipally owned golf course is located in a county with a minimum population of two million residents; and

• Youth education programs are conducted on an ongoing basis at the municipally owned golf course by a nonprofit organization exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code.

Payments made by a qualifying golf course operator prior to January 1, 2018, are not eligible for refund or assessable by audit.

➢ Disaster Preparedness Supplies Sales Tax Holiday Effective Date: May 25, 2017 Statute Reference: N/A Chapter Law: Section 53, 2017-36 (HB 7109, 2nd Eng.) Exempts, during the period from 12:01 a.m., June 2, 2017, through 11:59, June 4, 2017, sales of:

• A portable self-powered light source selling for $20 or less.

• A portable self-powered radio, two-way radio, or weather band radio selling for $50 or less.

• A tarpaulin or other flexible waterproof sheeting selling for $50 or less.

• A self-contained first-aid kit selling for $30 or less.

• A ground anchor system or tie-down kit selling for $50 or less.

• A gas or diesel fuel tank selling for $25 or less.

• A package of AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile and boat batteries, selling for $30 or less.

• A nonelectric food storage cooler selling for $30 or less.

• A portable generator used to provide light or communications or preserve food in the event of a power outage selling for $750 or less.

• Reusable ice selling for $10 or less.

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These exemptions do not apply to sales made within a theme park or entertainment complex, a public lodging establishment, or an airport. Authorizes the Department to adopt emergency rules to administer the sales tax holiday.

➢ Elimination of Registration Fees Effective Date: January 1, 2018 Statute Reference: Section 212.18, F.S. Chapter Law: Section 29, 2017-36 (HB 7109, 2nd Eng.) Amends s. 212.18(3)(a) and (c), F.S., deleting the required $5 registration fees for sales and use tax applicants.

➢ Fingerprint Services

Effective Date: July 1, 2017 Statute Reference: Sections 212.05, 790.06, and 790.062, F.S. Chapter Law: Sections 23, 50, and 51, 2017-36 (HB 7109, 2nd Eng.) Amends ss. 212.05(1)(i)1a., 790.06(5)(c), and 790.062(2), F.S., to clarify that fingerprint services administered by any law enforcement agency, military provost, military unit charged with law enforcement duties, the Division of Licensing of the Department of Agriculture and Consumer Services, or an approved tax collector are not subject to sales tax. This includes fingerprint services required as part of an application for a license to carry a concealed weapon or firearm to not be subject to sales tax.

➢ Mail-order Registration Effective Date: January 1, 2018 Statute Reference: Section 212.0596, F.S. Chapter Law: Section 25, 2017-36 (HB 7109, 2nd Eng.) Amends s. 212.0596(7), F.S., to remove the Department’s option to impose a registration fee from unregistered persons that remit sales or use tax directly to the Department.

➢ New Construction Located in Rural Area of Opportunity Effective Date: July 1, 2017 Statute Reference: Section 212.08(5)(r), F.S. Chapter Law: Section 26, 2017-36 (HB 7109, 2nd Eng.)

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Provides for a refund of sales tax paid by an owner, lessor, or lessee on building materials, the rental of tangible personal property, and pest control services used in new construction located in a rural area of opportunity. Each refund is limited to the lesser of 97.5% of the sales tax paid or $10,000, but must exceed $500. Applications for the refund are required to be filed with, and certified by, the Department of Economic Opportunity. The certified application must be submitted to the Department of Revenue within six months after the new construction is deemed to be substantially completed, or by November 1 after the new construction is first subject to assessment for ad valorem tax purposes.

➢ Products That Absorb Menstrual Flow

Effective Date: January 1, 2018 Statute Reference: Section 212.08(7)(nnn), F.S. Chapter Law: Section 28, 2017-36 (HB 7109, 2nd Eng.) Creates an exemption from sales tax for products used to absorb or contain menstrual flow. The exemption applies to sales of products such as tampons, sanitary napkins, pantiliners, and menstrual cups.

➢ Reduction of the Tax Rate for the Lease, Rental, or License to Use Real Property Effective Date: January 1, 2018 Statute Reference: Section 212.031, F.S. Chapter Law: Section 21, 2017-36 (HB 7109, 2nd Eng.) Amends s. 212.031(1)(c), F.S., providing that the tax imposed on the rental or license fees charged by the person charging or collecting the rental or license fee for the use of commercial rental property is reduced from 6% to 5.8%. Amends s. 212.031(1)(d), F.S., providing that the tax imposed on the value of property, goods, wares, merchandise, services, or other thing of value when the rental or license fee for the use of commercial real property is paid by way of property, goods, wares, merchandise, services, or other thing of value, is reduced from 6% to 5.8%. Clarifies that the applicable tax rate is based on the time the tenant occupies, uses, or is entitled to occupy or use the property, regardless of when payment is due or made. The applicable tax rate cannot be avoided by delaying or accelerating rent or license fee payments.

➢ Resale of Admissions to an Exempt Entity Effective Date: January 1, 2018 Statute Reference: Section 212.04, F.S. Chapter Law: Section 22, 2017-36 (HB 7109, 2nd Eng.) Provides that a purchaser who resells an admission to an exempt entity may seek a refund of the tax paid on the purchase of the admission from the Department. The purchaser is required to provide proof of the exempt entity’s exemption status and proof that the purchaser paid sales tax

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on its purchase. The bill authorizes the purchaser to claim a credit and requires that the purchaser maintain required refund documentation. The provision does not apply to sales of admissions to an exempt entity for resale. Provides that when a dealer purchases an admission from a related dealer, who is a member of the purchaser’s controlled group of corporations for federal income tax purposes, and subsequently resells the admission to an exempt entity, the dealer may seek a refund of tax paid from the related seller. The purchaser must document that the sale was to an exempt entity, and the refund will only be for tax paid by the purchaser, for which the related dealer can show tax was remitted to the Department. If the vendor has not yet remitted tax to the Department, the vendor may retain the exemption documentation in lieu of remitting tax to the Department.

➢ Vending Machine Notices Effective Date: January 1, 2018 Statute Reference: Section 212.0515, F.S. Chapter Law: Section 24, 2017-36 (HB 7109, 2nd Eng.) Eliminates the requirement provided in s. 212.0515, F.S., that a vending machine operator must post a notice on food and beverage vending machines and the $250 penalty per machine for failure to display the notice.

TAX ADMINISTRATION

➢ Clerk of Court Charges for the Dissolution of Marriage

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 7, 2017-233 (HB 1-A, 1st Eng.) Restructures the distribution of the $97.50 fee collected by the circuit court clerk from a party that petitions for a dissolution of marriage. Of the $97.50 collected by the clerk and transferred to the Department, $12.50 is no longer to be deposited in the Displaced Homemaker Trust Fund. The amount to be transferred by the clerk to the Department for deposit in the General Revenue Fund is increased to $37.50.

➢ Clerk of Court Marriage License Fees

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 11, 2017-233 (HB 1-A, 1st Eng.) Eliminates the $7.50 marriage license fee that is transferred to the Department for deposit in the Displaced Homemaker Trust Fund.

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➢ Disposition of Civil Penalties by County Courts

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 2, 2017-75 (SB 890, 1st Eng.) Changes the distribution of the 2% of the remainder of the civil penalties received by a county court that is currently remitted to the Department of Revenue and transmitted monthly to the Florida Endowment Foundation for Vocational Rehabilitation to be deposited by the Department in the Grants and Donations Trust Fund of the Division of Vocational Rehabilitation of the Department of Education. Also changes distribution of 60% of the $250 penalty imposed on a motorist that injures a mobility impaired pedestrian or causes damage to the pedestrian’s property. Sixty percent of the $250 fine is to be remitted by county courts to the Department to be deposited in the Grants and Donations Trust Fund of the Division of Vocational Rehabilitation of the Department of Education.

➢ Executive Steering Committee for Replacement of Florida Accounting Information Resource (FLAIR) Subsystem

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 32, 2017-71 (SB 2502, 2nd Eng.) Requires the Department’s continued appointment of a Department employee, familiar with the Department’s SUNTAX system, to be a member of the executive steering committee to oversee the replacement of specified components of the Florida Accounting Information Resource Subsystem (FLAIR) and the Cash Management Subsystem (CMS).

➢ Filing Fees for Trial and Appellate Proceedings, Fines

Effective Date: June 16, 2017 Statute Reference: N/A Chapter Law: Sections 2 and 8, 2017-126 (SB 2506, 1st Eng.)

Requires the clerk of court to deposit the fees collected from parties filing a cross-claim, counterclaim, counterpetition, or third-party complaint, as well as the first $80 of fees collected from appellants into the fine and forfeiture fund. The bill eliminates the clerk’s remittance to the Department for subsequent deposit in the General Revenue Fund.

Eliminates the requirement that fines collected from a person convicted of criminal offenses and noncriminal violations are to be remitted to the Department for deposit in the General Revenue Fund when adjudication is withheld and provides that all fines collected from a person convicted of criminal offenses and noncriminal violations are to be deposited into the subject clerk of court’s fine and forfeiture fund.

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➢ Florida Endowment for Vocational Rehabilitation

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 7, 2017-75 (SB 890, 1st Eng.) Funding for the Florida Endowment for Vocational Rehabilitation will no longer include portions of civil penalties received by county courts and remitted to the Department of Revenue for monthly transmission. The Endowment will be funded by legislative appropriations and bequests, gifts, grants, and donations from public and private sources.

➢ Professional Golf Hall of Fame Facility

Effective Date: July 1, 2017 Statute Reference: N/A Chapter Law: Section 16, 2017-233 (HB 1-A, 1st Eng.) Requires the Department to audit the World Golf Hall of Fame on or before October 1, 2017, to verify that the monthly distributions are expended as required. The Department is required to provide a copy of the audit to the Governor, the President of the Senate, and the Speaker of the House of Representatives by December 1, 2017.

➢ Transfers to Shared County/State Juvenile Detention Trust Fund

Effective Date: July 1, 2017 Statute Reference: Section 218.23, F.S. Chapter Law: Section 21, 2017-71 (SB 2502, 2nd Eng.) Extends the Department’s requirements of transferring withheld fund amounts from counties, as determined by the Department of Juvenile Justice, to the Shared County/State Juvenile Detention Trust Fund through July 1, 2018.