[RPPTL LandTen] Proposed SB 618

[Scott Frank]

Arlene:

 

I read the language as more of an authorization of the DOR to review if needed.  Currently, sales tax is self-reported, and DOR does not review anything unless DOR determines an audit is warranted.  So I just read the language to allow the DOR to review the lease if it is questioning the amount of sales tax due.  Of course, that could not be the intent of the actual drafter, but it is what I would like to think the intent was.  With that being said, I came up with the below, which turns this into an investigative right as part of an audit.

 

 

277.	For purposes of administering and implementing the exemptions 
278.	provided in this paragraph, as part of any administrative review undertaken by the department, the department shall be entitled to may review any lease, 
279.	license, or other such information as may be available to 
280.	determine the total rental charge that is subject to the 
281.	applicable exemption. 

Just my $0.02.

 

And don’t even get me started on the accounting and administrative headaches involved with partial tax exemptions that escalate on an annual basis.

 

Thanks.

 

 

Scott A. Frank

Attorney at Law

 

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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of Arlene Udick
Sent: Tuesday, February 19, 2019 2:26 PM
To: RPPTL Landlord Tenant Committee <landten at lists.flabarrpptl.org>
Subject: [RPPTL LandTen] Proposed SB 618

 

To All,

 

Please provide some feed back on proposed SB 618.  This is a long complicated bill dealing with sales tax on commercial leases, air carriers, limited exemptions for education, tax exemptions for data call centers, the entertainment industry, concessions for selling on the turnpike, and the high speed rail system.  The request for feed—back is limited to Chapter 212.031 FS - Tax on Commercial Real Property; Providing an exemption from the tax imposed on rental or license fees charged for the use of commercial real property; providing for the future repeal of specified provisions relating to the imposition of a tax on the rental or license fees charged for the use of commercial real property.

 

It provides a tax exemption on the first $10,000.00 of annual rent beginning on January 1, 2020, increasing an additional $10,000.00 each year until January 1, 2028, which exemption shall be the first $90,000 of annual rent.  Section 212.031 will be repealed on January 1, 2029. 

 

I have a problem with the following language. It needs to be changed.  Does the tenant voluntarily file the lease with the DOR.  Does the DOR require the leases to be sent to DOR?  Under what conditions or events can the DOR require any lease to be filed with it?   Please provide some suggested fixes.  (Assuming there are no objections to the exemptions)

 

277.	For purposes of administering and implementing the exemptions 
278.	provided in this paragraph, as part of any administrative review undertaken by the department, the department shall be entitled to may review any lease, 
279.	license, or other such information as may be available to 
280.	determine the total rental charge that is subject to the 
281.	applicable exemption. 

Please provide some suggested fixes or language.  Thanks.  Arlene

 

 

 

 

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