The purpose of the proposed amendments to Rule 12A-1.059, F.A.C. (Fuels), is to provide for the exemption for natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment provided in Section 4, Chapter 2013-42, ...  

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    DEPARTMENT OF REVENUE

    Sales and Use Tax

    RULE NOS.:RULE TITLES:

    12A-1.059Fuels

    12A-1.0641Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes

    12A-1.097Public Use Forms

    PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12A-1.059, F.A.C. (Fuels), is to provide for the exemption for natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment provided in Section 4, Chapter 2013-42, L.O.F., effective July 1, 2013, and for the exemption for natural gas fuel placed into the fuel supply system of a motor vehicle provided in Section 15, Chapter 2013-198, L.O.F., effective January 1, 2014.

    The purpose of the proposed amendments to Rule 12A-1.0641, F.A.C. (Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes), is to provide for the exemption for dyed diesel fuel placed into the fuel supply tank of a vessel or equipment used exclusively for commercial fishing or aquacultural purposes, as provided in Chapter 2013-82, L.O.F.

    The purpose of the proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), is to adopt, by reference, updates and changes to forms used by the Department in the administration of sales and use tax.

    SUMMARY: The proposed amendments to Rule 12A-1.059, F.A.C. (Fuels): (1) include the exemption for natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment effective July 1, 2013, as provided in Section 4, Chapter 2013-42, L.O.F., and provide a suggested exemption certificate for purchasing such gas tax-exempt; (2) replace the term “alternative fuel” with “natural gas fuel,” as provided in Sections 1 and 7, Chapter 2013-198, L.O.F.; (3) provide for the exemption for natural gas fuel placed into the fuel supply system of a motor vehicle effective January 1, 2014, as provided in Section 15, Chapter 2013-198, L.O.F.; (4) provide for the exemption for dyed diesel fuel used in a vessel or equipment used exclusively for commercial fishing and aquacultural purposes, as provided in Chapter 2013-82, L.O.F.; and (5) clarify that exemptions for fuel used for certain agricultural purposes are provided in Rule 12A-1.087, F.A.C.

    The purpose of the proposed amendments to Rule 12A-1.0641, F.A.C. (Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes), is to provide that dyed diesel fuel used in a vessel or equipment used exclusively for commercial fishing or aquacultural purposes is exempt from sales tax, as provided in Chapter 2013-82, L.O.F., and to provide a suggested exemption certificate to purchase such fuel tax-exempt.

    The purpose of the proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), is to adopt, by reference, a new return for reporting Florida use tax due on an aircraft and changes to forms currently used by the Department to administer sales and use tax.

    SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

    The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

    The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences with activities for providing the public with information on new tax exemptions, and to update sales and use tax returns, the adverse impact or regulatory cost, if any, do not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.

    Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

    RULEMAKING AUTHORITY: 201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.0515(7), 212.07(1)(b), 212.08(5)(b)4., (7), 212.11(5)(b), 212.12(1)(a)2., 212.17(6), 212.18(2), (3), 212.183, 213.06(1), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b), 443.171(2), (7) FS.

    LAW IMPLEMENTED: 92.525(1)(b), (3), 95.091, 119.071(5), 125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 201.17(1)-(5), 202.11(2), (3), (6), (16), (24), 202.17, 202.22(3)-(6), 202.28(1), 203.01, 206.86(4), 212.02, 212.03, 212.0305, 212.031, 212.04, 212.05, 212.0501, 212.0515, 212.054, 212.055, 212.06, 212.0606, 212.07(1), (8), (9), 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.11(1), (4), (5), 212.12(1), (2), (9), (13), 212.13, 212.14(4), (5), 212.17, 212.18(2), (3), 212.183, 212.21(3), 213.235, 213.255(1), (2), (3), 213.29, 213.37, 215.26(2), 288.1258, 376.70, 376.75, 403.717, 403.718, 403.7185, 443.036, 443.121(1), (3), 443.131, 443.1315, 443.1316, 443.171(2), (7) FS.

    A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

    DATE AND TIME: November 13, 2013, 2:00 p.m.

    PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, Tallahassee, Florida

    Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Tammy Miller at (850)617-8347. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

    THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ronald Gay, or Janet L. Young, Tax Law Specialists, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone: (850)617-8346

     

    THE FULL TEXT OF THE PROPOSED RULE IS:

     

    12A-1.059 Fuels.

    (1) through (2) No change.

    (3)(a) Natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment is exempt. To purchase natural gas used for this purpose tax-exempt, the purchaser is required to provide an exemption certificate to the selling dealer declaring that the natural gas will be used to generate electricity in a non-combustion fuel cell used in stationary equipment. The following is a suggested format of a certificate:

    EXEMPTION CERTIFICATE

    NATURAL GAS USED TO GENERATE ELECTRICITY

    IN A NON-COMBUSTION FUEL CELL USED IN STATIONARY EQUIPMENT

    I certify that natural gas purchased on or after _____________(Date) from ____________________(Selling Vendor’s Name) will be used to generate electricity in a non-combustion fuel cell used in stationary equipment.

    I understand that if I use the purchased natural gas for any nonexempt purpose, I must pay tax on the purchase price of the natural gas directly to the Florida Department of Revenue.

    I understand that if I fraudulently issue this Certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax, plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony.

    Under the penalties of perjury, I declare that I have read the foregoing Certificate and the facts stated herein are true.

    __________________________________________________

    SIGNATURE OF PURCHASER OR AUTHORIZED AGENT

    _______________________

    TITLE OR DESIGNATION

    _________________

    DATE

    (4)(3)(a) No change.

    (b) The following sales or purchases of diesel fuel are exempt from sales and use tax:

    1. Fuel upon which the fuel taxes imposed under Chapter 206, F.S., have has been paid;

    2. Fuel used for certain agricultural purposes, as provided in Rule 12A-1.087, F.A.C.; and

    3. Fuel purchased or stored for purposes of resale.

    (5)(4) Dyed diesel Diesel fuel used by a licensed common carrier to operate railroad locomotives or vessels used to transport persons or property for hire in interstate or foreign commerce, or used to operate a commercial fishing vessel, is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax is based on the mileage apportionment factor of the licensed carrier or vessel owner or operators. Dyed diesel fuel used exclusively for commercial fishing and aquacultural purposes is exempt. See Rules 12A-1.064 and 12A-1.0641, F.A.C.

    (6)(a)(5) The sale of natural gas alternative fuel, as defined in Section 206.9951 206.86(4), F.S., is subject to sales tax. Natural gas Alternative fuels include liquefied petroleum gas, compressed natural gas, natural gasoline, butane gas, and propane gas.

    (b) Natural gas and natural gas fuel are exempt from sales tax when placed into the fuel supply system of a motor vehicle.

    (c) See Rule 12A-1.087, F.A.C., for liquefied petroleum gas, diesel, kerosene, or other alternative fuel used for certain agricultural purposes.

    Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees; Rule 12A-1.087, F.A.C., and Rule 12B-5.130, F.A.C.

    Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 206.86(4), 212.05, 212.06(3), 212.08(4), (7)(b), (j), (8) FS. History– Revised 10-7-68, 6-16-72, Amended 7-19-72, 12-11-74, 10-18-78, 7-3-79, 6-3-80, 12-23-80, 8-26-81, 12-31-81, 7-20-82, 10-13-83, Formerly 12A-1.59, Amended 12-13-88, 5-19-93, 9-14-93, 3-20-96, 10-2-01, 4-17-03, 6-12-03, 5-9-13,____________.

     

    12A-1.0641 Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes.

    (1) through (5) No change.

    (6) DYED DIESEL FUEL USED IN INTERSTATE OR FOREIGN COMMERCE OR FOR COMMERCIAL FISHING PURPOSES.

    (a)1. The sale of dyed diesel fuel placed into the storage tank of a vessel or equipment used exclusively for commercial fishing and aquacultural purposes is exempt. “Commercial fishing and aquacultural purposes” means fuel used in the operation of boats, vessels, or equipment used exclusively for the taking of fish, crayfish, oysters, shrimp, or sponges from Florida salt or fresh waters for resale to the public.

    2. This exemption does not include fuel used for sport or pleasure fishing or fuel used in any vehicle or equipment driven or operated upon the highways of Florida.

    3. To purchase dyed diesel fuel exempt from sales tax at the time of purchase, the purchaser is required to provide an exemption certificate to the selling dealer declaring that the fuel will be used exclusively in equipment or a vessel for commercial fishing or aquacultural purposes. The following is a suggested format of a certificate:

    EXEMPTION CERTIFICATE

    DYED DIESEL FUEL USED EXCLUSIVELY FOR

    COMMERCIAL FISHING OR AQUACULTURAL PURPOSES

    I certify that dyed diesel fuel placed in the storage tank of a vessel or equipment on or after _____________(Date) from __________________________(Selling Vendor’s Name) will be used exclusively in the equipment or vessel for the taking of fish, crayfish, oysters, shrimp, or sponges from Florida salt or fresh waters for resale to the public.

    I understand that if I use the purchased dyed diesel fuel for any nonexempt purpose, I must pay tax on the purchase price of the dyed diesel fuel directly to the Florida Department of Revenue.

    I understand that if I fraudulently issue this Certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax, plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony.

    Under the penalties of perjury, I declare that I have read the foregoing Certificate and the facts stated herein are true.

    __________________________________________________

    SIGNATURE OF PURCHASER OR AUTHORIZED AGENT

    _______________________

    TITLE OR DESIGNATION

    _________________

    DATE

    (b)1.(a) The sale of dyed diesel fuel to the owner, operator, or the owner’s agent or representative of vessels operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax imposed is based on the vessel owner’s mileage apportionment factor.

    2.(b) To purchase dyed diesel fuel exempt from sales tax at the time of purchase, the owner, operator, or the owner’s agent or representative is required to execute an affidavit a statement to the selling dealer declaring that the fuel will be used in a vessel operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes. The following is a suggested format of an affidavit a certificate:

    AFFIDAVIT CERTIFICATE

    DYED DIESEL FUEL FOR USE IN A VESSEL OPERATED

    IN INTERSTATE OR FOREIGN COMMERCE

    OR FOR COMMERCIAL FISHING PURPOSES

    I, the undersigned individual, as the Owner, Operator, or the Owner’s agent or representative of the vessel, _______________, Home Port of ____________________, certify the following. The option checked below applies to this purchase:

    ( ) The named vessel is used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The fuel will not be used to operate the vessel in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax.

    ( ) The named vessel is used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters and in Florida territorial waters. The fuel will be used to operate vessels in interstate or foreign commerce or for commercial fishing purposes and is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. The Owner holds a valid sales and use tax certificate of registration issued by the Florida Department of Revenue and must pay tax due on the fuel directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the fuel and is delinquent on the 21st day of that month.

    I understand that if I fraudulently issue this Affidavit Certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

    Under the penalties of perjury, I declare that I have read the foregoing Affidavit Certificate and the facts stated herein are true and correct to the best of my knowledge and belief.

    ______________________________________________________________

    SIGNATURE OF OWNER, OPERATOR, AGENT, OR REPRESENTATIVE

    ________________________

    TITLE OR DESIGNATION

    _________________

    DATE

    (7) through (9) No change.

    Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(10)(g), 212.05(1), 212.0501(4), 212.06(1), 212.08(4)(a)2., 4., (8), 212.085, 212.13(1), 212.21(3) FS. History–New 6-12-03, Amended 5-9-13,_____________.

     

    12A-1.097 Public Use Forms.

    (1) The following public use forms and instructions are employed by the Department in its dealings with the public related to the administration of Chapter 212, F.S. These forms are hereby incorporated by reference in this rule.

    (a) through (b) No change.

    Form NumberTitleEffective Date

    (2)(a) DR-1Florida Business Tax Application (R. 10/13 07/11)___ 01/12

    (http://www.flrules.org/Gateway/reference.asp?No=Ref-____ 00846)

    (b) DR-1NInstructions for Completing the Florida Business

    Tax Application (Form DR-1) (R. 10/13 N. 07/11)___ 01/12

    (http://www.flrules.org/Gateway/reference.asp?No=Ref-____ 00847)

    (3) through (5) No change.

    (6)(a) through (b) No change.

    (c) DR-15AIRSales and Use Tax Return for Aircraft (N. 08/13)___

    (http://www.flrules.org/Gateway/reference.asp?No=Ref-____ )

    (c) through (e) renumbered (d) through (f) No change.

    (g)(f) DR-15MOFlorida Tax on Purchases (R. 08/13 09/10)___ 01/11

    (http://www.flrules.org/Gateway/reference.asp?No=Ref-____ )

    (g) through (j) renumbered (h) through (k) No change.

    (7)(a) No change.

    (b) DR-16P*Sales and Use Tax Direct Pay Permit (R. 08/13 10/12)___ 01/13

    (http://www.flrules.org/Gateway/reference.asp?No=Ref- ___ 02158)

    (c) No change.

    (8) through (15) No change.

    (16) DR 72-2Declaration of Taxable Status – Trailer Camps, Mobile

    Home Parks, and Recreational Vehicle Parks (R. 06/13 02/00)___ 06/99

    (http://www.flrules.org/Gateway/reference.asp?No=Ref-____ )

    (17) through (23) No change.

    Rulemaking Authority 201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.0515(7), 212.07(1)(b), 212.08(5)(b)4., (n)4., (o)4., (7), 212.11(5)(b), 212.12(1)(a)2., 212.17(6), 212.18(2), (3), 212.183, 213.06(1), 288.1258(4)(c), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b), 443.171(2), (7) FS. Law Implemented 92.525(1)(b), (3), 95.091, 119.071(5), 125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 201.17(1)-(5), 202.11(2), (3), (6), (16), (24), 202.17, 202.22(3)-(6), 202.28(1), 203.01, 212.02, 212.03, 212.0305, 212.031, 212.04, 212.05, 212.0501, 212.0515, 212.054, 212.055, 212.06, 212.0606, 212.07(1), (8), (9), 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.11(1), (4), (5), 212.12(1), (2), (9), (13), 212.13, 212.14(4), (5), 212.17, 212.18(2), (3), 212.183, 213.235, 213.29, 213.37, 288.1258, 376.70, 376.75, 403.717, 403.718, 403.7185, 443.036, 443.121(1), (3), 443.131, 443.1315, 443.1316, 443.171(2), (7) FS. History–New 4-12-84, Formerly 12A-1.97, Amended 8-10-92, 11-30-97, 7-1-99, 4-2-00, 6-28-00, 6-19-01, 10-2-01, 10-21-01, 8-1-02, 4-17-03, 5-4-03, 6-12-03, 10-1-03, 9-28-04, 6-28-05, 5-1-06, 4-5-07, 1-1-08, 4-1-08, 6-4-08, 1-27-09, 9-1-09, 11-3-09, 1-11-10, 4-26-10, 6-28-10, 7-12-10, 1-12-11, 1-25-12, 1-17-13, 5-9-13,_________.

     

    NAME OF PERSON ORIGINATING PROPOSED RULE: Ronald Gay, or Janet L. Young, Tax Law Specialists, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone: (850)617-8346

    NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 24, 2013

    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: A Notice of Proposed Rule Development was published in the Florida Administrative Register on August 2, 2013 (Vol. 39, No. 150, pp. 3823 - 3824), to advise the public of the proposed amendments to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), and to provide that, if requested in writing, a rule development workshop would be held on August 22, 2013. A rule development workshop was held on that date; however, no comments were received by the Department.

Document Information

Comments Open:
10/21/2013
Summary:
The proposed amendments to Rule 12A-1.059, F.A.C. (Fuels): (1) include the exemption for natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment effective July 1, 2013, as provided in Section 4, Chapter 2013-42, L.O.F., and provide a suggested exemption certificate for purchasing such gas tax-exempt; (2) replace the term “alternative fuel” with “natural gas fuel,” as provided in Sections 1 and 7, Chapter 2013-198, L.O.F.; (3) provide for the exemption ...
Purpose:
The purpose of the proposed amendments to Rule 12A-1.059, F.A.C. (Fuels), is to provide for the exemption for natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment provided in Section 4, Chapter 2013-42, L.O.F., effective July 1, 2013, and for the exemption for natural gas fuel placed into the fuel supply system of a motor vehicle provided in Section 15, Chapter 2013-198, L.O.F., effective January 1, 2014. The purpose of the proposed amendments to ...
Rulemaking Authority:
201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.0515(7), 212.07(1)(b), 212.08(5)(b)4., (7), 212.11(5)(b), 212.12(1)(a)2., 212.17(6), 212.18(2), (3), 212.183, 213.06(1), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b), 443.171(2), (7) FS.
Law:
92.525(1)(b), (3), 95.091, 119.071(5), 125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 201.17(1)-(5), 202.11(2), (3), (6), (16), (24), 202.17, 202.22(3)-(6), 202.28(1), 203.01, 206.86(4), 212.02, 212.03, 212.0305, 212.031, 212.04, 212.05, 212.0501, 212.0515, 212.054, 212.055, 212.06, 212.0606, 212.07(1), (8), (9), 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.11(1), (4), (5), 212.12(1), (2), (9), (13), 212.13, 212.14(4), (5), 212.17, 212.18(2), (3), 212.183, 212.21(3), 213.235, 213.255(1)...
Contact:
Ronald Gay, or Janet L. Young, Tax Law Specialists, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850) 617-8346.
Related Rules: (3)
12A-1.059. Fuels
12A-1.0641. Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes
12A-1.097. Public Use Forms