Senate Bill 1778 (2020) — Taxation of real property
SB 1778
Florida Bills
Florida Senate - 2020 SB 1778 By Senator Gruters 23-00609B-20 20201778__ Page 1 of 4 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to taxation of real property; amending 2 s. 212.031, F.S.; exempting from the sales and use tax 3 certain property that is rented, leased, subleased, or 4 licensed to a specified small business; providing 5
definitions; providing application procedures; 6 requiring the Department of Revenue to approve or deny 7 such application within a specified time period; 8 providing requirements for the department and the 9 small business; providing for expiration of the 10 approval letter; providing renewal procedures; 11 providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15
Section 1. Subsection (10) is added to
section 212.031, 16 Florida Statutes, to read: 17 212.031 Tax on rental or license fee for use of real 18 property.— 19 (10)(
a) The rental, lease, sublease, or license of real 20 property to a small business is exempt from the tax imposed by 21 this section. 22 (
b) For purposes of this subsection, the term: 23 1. “Small business” means a business that employs nine or 24 fewer total employees at all of its business locations which are 25 related through common ownership and whose business activities 26 are integrated with, dependent upon, or contribute to the flow 27 of value among such locations. 28 2. “Total employees” means all full-time and part-time 29 Florida Senate - 2020 SB 1778 23-00609B-20 20201778__ Page 2 of 4 CODING: Words stricken are deletions; words underlined are additions. employees currently employed by a small business at all of its 30 business locations, wherever they are located, and includes any 31 person performing services for the small business under an 32 employee leasing arrangement as defined in s. 468.520(4). 33 (
c) To receive an exemption under paragraph (a), a small 34 business must submit a completed application to the department 35 containing the following information: 36 1. A statement that the small business is seeking the 37 exemption provided in this subsection. 38 2. The name, mailing address, and, if applicable, the 39 federal employment identification number and business partner 40 number of the small business. 41 3. A list of the physical addresses of each of the small 42 business’s business locations in the state. 43 4.
A copy of the small business’s most recently signed and 44 filed Florida Department of Revenue Employer’s Quarterly Report 45 (RT-6) documenting that nine or fewer employees were employed 46 during each of the months within the most recently filed RT-6, 47 if such small business was required to file the RT-6. 48 5. A sworn statement, under penalty of perjury, executed by 49 a duly authorized officer or agent of the small business 50 certifying the number of total employees employed by the small 51 business and attesting to the accuracy of the information 52 included in the application. 53 (d)1.
The department must review each application to 54 determine whether it is complete. If it is not complete, the 55 department must notify the small business and specify the 56 additional information necessary to complete the application. 57 2. The department must approve or deny each complete 58 Florida Senate - 2020 SB 1778 23-00609B-20 20201778__ Page 3 of 4 CODING: Words stricken are deletions; words underlined are additions. application within 30 days after receiving it.
The department 59 shall review and verify the small business’s eligibility for the 60 exemption by confirming that the number of total employees in 61 the certification statement and the number of total employees 62 listed in the RT-6 is nine or fewer, if the RT-6 was required to 63 be submitted. 64 3.
If the department determines that the small business is 65 eligible for the exemption, it must issue an approval letter to 66 the small business that includes the name of the small business, 67 a list of all of the small business’s business locations in the 68 state, a statement that the small business qualifies for the 69 exemption under this subsection, and an expiration date that is 70 1 year after the last day of the month in which the approval 71 letter was issued. 72 4.
If the department is unable to verify the eligibility of 73 the small business, the department must issue a denial letter to 74 the small business explaining the reasons for denial. 75 (
e) To obtain the exemption under this subsection, the 76 small business must submit the approval letter to the landlord, 77 lessor, or licensor. The exemption applies only during the time 78 that the small business occupies, uses, or is entitled to occupy 79 or use the real property regardless of when a rent or license 80 fee payment is due or paid. The applicable tax under this 81
chapter may not be avoided by delaying or accelerating rent or 82 license fee payments so that they are paid during a period 83 covered by the approval letter. 84 (f)1. An approval letter is valid for 1 year after the last 85 day of the month in which it was issued. To continue receiving 86 the tax exemption without interruption, the small business must 87 Florida Senate - 2020 SB 1778 23-00609B-20 20201778__ Page 4 of 4 CODING: Words stricken are deletions; words underlined are additions. submit a new application to the department at least 45 days 88 before the approval letter is scheduled to expire. 89 2.
A small business that does not reapply within the 90 timeframe specified in subparagraph 1. may submit a new 91 application to the department at any time. Any rental, lease, 92 sublease, or license of real property to the small business 93 after a previously issued approval letter has expired is subject 94 to the applicable tax under this
chapter unless it is otherwise 95 exempt. 96