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  Section 212.031 will be repealed on January 1, 2029.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)

1. For purposes of administering and implementing the exemptions
2. provided in this paragraph, the department may review any lease,
3. license, or other such information as may be available to
4. determine the total rental charge that is subject to the
5. applicable exemption.
   Please provide some suggested fixes or language.  Thanks.  Arlene

I read the statute to apply to the condos individually.  The statute is clear that the liability is on the tenant to pay and on the landlord to remit the taxes due to DOR in one payment.  The original statute provides a lien on the tenant’s personal property if the tax is not paid.

From: landten-bounces@lists.flabarrpptl.org on behalf of Deborah Marks deborahmarkslaw@gmail.com
Reply-To: RPPTL Landlord Tenant Committee landten@lists.flabarrpptl.org
Date: Tuesday, February 19, 2019 at 1:44 PM
To: RPPTL Landlord Tenant Committee landten@lists.flabarrpptl.org
Subject: Re: [RPPTL LandTen] Proposed SB 618

So if the building is a commercial condo with 10 units, even if all owned by the same owner it would be 10k for each unit not subject to tax but if it were not in condo form it would be 10k total for all 10 rentals? Seems unjust.

Deborah Marks
Deborah Marks, PLLC
18495 South Dixie Highway
Suite 134
Miami, FL 33157
305-372-9400

On Feb 19, 2019, at 2:25 PM, Arlene Udick <arlene@udicklaw.commailto:arlene@udicklaw.com> wrote:

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)

1. For purposes of administering and implementing the exemptions
2. provided in this paragraph, the department may review any lease,
3. license, or other such information as may be available to
4. determine the total rental charge that is subject to the
5. applicable exemption.
   Please provide some suggested fixes or language.  Thanks.  Arlene

landten mailing list
landten@lists.flabarrpptl.orgmailto:landten@lists.flabarrpptl.org
http://mailman.fsr.com/mailman/listinfo/landten

I don’t see the SB attached….but….what if the State develops a form to identify leases….would that make them valid even if there are defects? The legislation would have to exclude the enforceability of a lease which may otherwise be defective that would make it voidable.

Les H. Stevens, Esquire

Les H. Stevens, P.A.

5301 North Federal Highway

Suite 130

Boca Raton, Florida 33487

Tel: 561-989-9797

Fax: 561-989-8484

E-Mail:  mailto:lesstevens@earthlink.net lesstevens@earthlink.net

OUR OFFICE NO LONGER ACCEPTS CASHIER’S CHECKS AT CLOSING. ALL FUNDS MUST BE RECEIVED IN THE FORM OF A SAME DATE WIRE TRANSFER ONLY (NO ACH TRANSFERS). PLEASE CONTACT US TO VERIFY WIRING INSTRUCTIONS BEFORE INITIATING ANY WIRE.

THIS MESSAGE IS INTENEDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHOM IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND/OR OTHERWISE EXEMPT FROM DISCLOSURE. IF YOU HAVE RECEIVED THIS TRANSMITTAL IN ERROR, PLEASE DELETE IT AND NOTIFY THIS OFFICE IMMEDIATELY.

From: landten-bounces@lists.flabarrpptl.org landten-bounces@lists.flabarrpptl.org On Behalf Of Arlene Udick
Sent: Tuesday, February 19, 2019 3:12 PM
To: RPPTL Landlord Tenant Committee landten@lists.flabarrpptl.org
Subject: Re: [RPPTL LandTen] Proposed SB 618

I read the statute to apply to the condos individually.  The statute is clear that the liability is on the tenant to pay and on the landlord to remit the taxes due to DOR in one payment.  The original statute provides a lien on the tenant’s personal property if the tax is not paid.

From: <landten-bounces@lists.flabarrpptl.org mailto:landten-bounces@lists.flabarrpptl.org > on behalf of Deborah Marks <deborahmarkslaw@gmail.com mailto:deborahmarkslaw@gmail.com >
Reply-To: RPPTL Landlord Tenant Committee <landten@lists.flabarrpptl.org mailto:landten@lists.flabarrpptl.org >
Date: Tuesday, February 19, 2019 at 1:44 PM
To: RPPTL Landlord Tenant Committee <landten@lists.flabarrpptl.org mailto:landten@lists.flabarrpptl.org >
Subject: Re: [RPPTL LandTen] Proposed SB 618

So if the building is a commercial condo with 10 units, even if all owned by the same owner it would be 10k for each unit not subject to tax but if it were not in condo form it would be 10k total for all 10 rentals? Seems unjust.

Deborah Marks

Deborah Marks, PLLC

18495 South Dixie Highway

Suite 134

Miami, FL 33157

305-372-9400

On Feb 19, 2019, at 2:25 PM, Arlene Udick <arlene@udicklaw.com mailto:arlene@udicklaw.com > wrote:

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, the department 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

landten mailing list
mailto:landten@lists.flabarrpptl.org landten@lists.flabarrpptl.org
http://mailman.fsr.com/mailman/listinfo/landten http://mailman.fsr.com/mailman/listinfo/landten

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

LAW OFFICES OF SCOTT A. FRANK, P.A.

3201 W. Commercial Boulevard, Suite 218

Fort Lauderdale, Florida 33309

p:  (561) 826-5400

f:  (561) 423-5721

mailto:sfrank@saflaw.com sfrank@saflaw.com

If you believe that you have received this message in error, please notify the sender by reply transmission and delete the message without copying or disclosing it.

Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication, including any attachments or enclosures, is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

From: landten-bounces@lists.flabarrpptl.org landten-bounces@lists.flabarrpptl.org On Behalf Of Arlene Udick
Sent: Tuesday, February 19, 2019 2:26 PM
To: RPPTL Landlord Tenant Committee landten@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

Just by way of background, this bill has been introduced every year since at least 2017, and has not passed. I’m not sure if it has ever even been heard in committee. The bill is VERY difficult for DOR to administer.

Trey Goldman

Legislative Counsel | FloridaRealtors®
200 South Monroe Street, Tallahassee, FL 32301
talk: 850.224.1400 x2505
direct: 850.521.3277
visit: http://www.floridarealtors.orghttp://www.floridarealtors.org/
Facebook: http://www.floridarealtors.org/facebook
Twitter: http://www.floridarealtors.org/twitter
The Voice for Real Estate® in Florida

From: landten-bounces@lists.flabarrpptl.org landten-bounces@lists.flabarrpptl.org On Behalf Of Arlene Udick
Sent: Tuesday, February 19, 2019 2:26 PM
To: RPPTL Landlord Tenant Committee landten@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)

1. For purposes of administering and implementing the exemptions
2. provided in this paragraph, the department may review any lease,
3. license, or other such information as may be available to
4. determine the total rental charge that is subject to the
5. applicable exemption.
   Please provide some suggested fixes or language.  Thanks.  Arlene

A copy of SB is attached.  Thanks everyone.

Best regards,

Brenda B. Ezell, B.C.S.

[BCS]

[cid:image002.png@01D4C86D.8B8C1170]
3560 Cardinal Point Drive, Suite 202
Jacksonville, FL 32257
904.432.3200 (o)
904-432-3201 (f)
www.ezellfirmpa.comhttp://www.ezellfirmpa.com/

CONFIDENTIALITY NOTICE: This e-mail and any files transmitted with it are confidential and may contain information which is legally privileged or otherwise exempt from disclosure. They are intended solely for the use of the individual or entity to whom this e-mail is addressed. If you are not one of the named recipients or otherwise have reason to believe that you have received this message in error, please immediately notify the sender and delete this message immediately from your computer. Any other use, retention, dissemination, forwarding, printing, or copying of this e-mail is strictly prohibited.

From: Arlene Udick [mailto:arlene@udicklaw.com]
Sent: Tuesday, February 19, 2019 2:26 PM
To: RPPTL Landlord Tenant Committee landten@lists.flabarrpptl.org
Cc: Brenda Ezell brenda@ezellfirmpa.com
Subject: 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)

1. For purposes of administering and implementing the exemptions
2. provided in this paragraph, the department may review any lease,
3. license, or other such information as may be available to
4. determine the total rental charge that is subject to the
5. applicable exemption.
   Please provide some suggested fixes or language.  Thanks.  Arlene