4439998, 12A-1.053 - Florida Administrative Rules, Law, Code, Register

Home

Florida Department of State and Division of Library and Information Services

Notice: 4439998

Notice of Development of Rulemaking

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.053	Electric Power and Energy
12A-1.087	Exemption for Power Farm Equipment; Electricity Used for Certain Agricultural Purposes; Suggested Exemption Certificate for Items Used for Agricultural Purposes

PURPOSE:

The purpose of the proposed amendments to Rule 12A-1.053, F.A.C. (Electric Power and Energy), is to provide that provisions for the exemption for electricity used for the production or processing of agricultural farm products on a farm are provided in Rule 12A-1.087, F.A.C.
The purpose of the proposed amendments to Rule 12A-1.087, F.A.C., (Exemption for Power Farm Equipment; Suggested Exemption Certificates for Items Used for Agricultural Purposes), is to: (1) to change the rule title to reflect the changes in the rule; (2) incorporate the provisions of Sections 1-2, Chapter 2005-197, L.O.F., regarding the exemption provided for power farm equipment; (3) incorporate the provisions of Section 19, Chapter 2006-289, L.O.F., and Chapter 2007-56, L.O.F., regarding the exemption provided for electricity used for the production or processing of agricultural farm products on a farm; (4) provide that the purchase, lease, or rental of power farm equipment that is purchased and invoiced as a single working unit is exempt, but when purchased separately only items qualifying as power farm equipment are tax-exempt; and (5) eliminate the requirement for an exemption certificate to be issued by the purchaser to the seller for the purchase of tax-exempt seeds, including field, garden, and flower seeds, as seeds are tax-exempt regardless of their use.
The proposed amendments to Rule 12A-1.087, F.A.C.: (1) provide that “power farm equipment,” as defined in Chapter 2005-197, L.O.F., is exempt from tax, and change the rule title to reflect this statutory change; (2) remove obsolete definitions of the terms “self-propelled,” “power-drawn,” and “power-driven” farm equipment; (3) eliminate the 2.5% tax rate imposed on certain equipment prior to July 1, 2005; (4) provide examples of power farm equipment qualifying for the exemption; (5) provide that the purchase, lease, or rental of power farm equipment that is purchased and invoiced as a single working unit is exempt, but when purchased separately only items qualifying as power farm equipment are tax-exempt; (6) provide examples of items purchased and invoiced as a single working unit that qualifies for the exemption for power farm equipment; (7) provide that generators and power units are included in the definition of power farm equipment; (8) eliminate obsolete provisions regarding generators; (9) eliminate the requirement for an exemption certificate to be issued by the purchaser to the seller for the purchase of tax-exempt seeds, including field, garden, and flower seeds; (10) provide requirements for the exemption provided by Section 19, Chapter 2006-289, L.O.F., and amended by Chapter 2007-56, L.O.F., for electricity used for the production or processing of agricultural farm products on a farm and a suggested purchaser’s exemption certificate to be issued to electric utilities; (11) revise the suggested exemption certificate to incorporate the exemption provided for power farm equipment and a statement that the facts stated in the exemption certificate are true and to remove the obsolete term “self-propelled, power-drawn, or power-driven farm equipment” and the obsolete requirement to issue an exemption certificate to purchase seeds tax-exempt; and (12) provide technical changes.

SUBJECT:

The subject of this workshop is the proposed amendments to Rules 12A-1.053 and 12A-1.087, F.A.C., that are necessary to implement the provisions of Sections 1 and 2, Chapter 2005-197, L.O.F., regarding the tax exemption provided for power farm equipment, and the provisions of Section 19, Chapter 2006-289, L.O.F., and Chapter 2007-56, L.O.F., regarding the exemption provided for electricity used for the production or processing of agricultural farm products on a farm.

RULEMAKING AUTHORITY:

212.17(6), 212.18(2), 213.06(1) FS.

LAW:

212.02(2), (14)(c), (19), (30), (31), (32), 212.05(1), 212.0501, 212.06(1), 212.07(5), 212.08(3), (4), (5)(a), (e), (7)(j), 212.085, 212.18 FS.

PRINT PUBLISH DATE:

8/10/2007 Vol. 33/32

RELATED STATUTES
AND LAWS:

212.17(6), 212.18(2), 213.06(1) FS., 212.02(2), (14)(c), (19), (30), (31), (32), 212.05(1), 212.0501, 212.06(1), 212.07(5), 212.08(3), (4), (5)(a), (e), (7)(j), 212.085, 212.18 FS.

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=12A-1.053&PDate=8/10/2007&Section=1

REFERENCE MATERIALS:

No reference(s).

Under Florida law, E-mail addresses are public records. If you do not want your E-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.