5471205, 12A-1.053 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 5471205

Notice of Proposed Rule

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, Florida Administrative Code (F.A.C.), Electric Power and Energy, is to provide that provisions for the exemption provided by Section 19, Chapter 2006-289, Laws of Florida (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 are provided in Rule 12A-1.087, F.A.C., as amended.
The purpose of the proposed amendments to Rule 12A-1.087, F.A.C. (Partial Exemption for Farm Equipment; Suggested Exemption Certificate for Items Used for Agricultural Purposes), is to: (1) incorporate the provisions of Sections 1-2, Chapter 2005-197, L.O.F., which provide an exemption for power farm equipment; (2) 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 (3) 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, because seeds are tax-exempt regardless of the type of seed or their use.

SUMMARY:

The proposed amendments to Rule 12A-1.053, F.A.C. (Electric Power and Energy), provide reference to Rule 12A-1.087, F.A.C., for the exemption for electricity used for the production or processing of agricultural farm products on a farm.
The proposed amendments to Rule 12A-1.087, F.A.C. (Exemption for Power Farm Equipment; Suggested Exemption Certificate for Items Used for Agricultural Purposes): (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, including a definition of the term “used 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, to clarify the exemptions for generators, to remove the obsolete terms “self-propelled, power-drawn, or power-driven farm equipment,” and to remove the requirement to issue an exemption certificate to purchase seeds tax-exempt; and (12) provide technical changes.

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, 823.14(3) FS.

PRINT PUBLISH DATE:

4/11/2008 Vol. 34/15

COMMENTS:

From 4/11/2008 To 5/2/2008 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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