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If a property owner enters into a lease agreement with a finance company to make land improvements and then leases the improved property back to the owner with rent payments covering the finance costs, the agreement is not subject to tax. In the state of Florida, this type of arrangement is considered a mortgage rather than an operating lease. The agreement cannot be considered a lease because the business of the lessor is not real property leases, "amortization of the debt" is the only substance to the agreement, the lessee is responsible for any obligations of ownership, risk, and maintenance, and all payment obligations are "absolute and unconditional". (Technical Assistance Advisement, No. 02A-029, Florida Department of Revenue, June 28, 2002)

(03/15/2003)

The Governor of Florida has proposed a nine-day clothing exemption and a one-month book exemption. The time frame for this proposed tax holiday has yet to be determined. (E-Budget, Florida Governor Jeb Bush, January 21, 2003)

(03/15/2003)

A Technical Assistance Advisement was issued by the Florida Department of Revenue to discuss the taxability of construction materials purchased for an exempt entity construction project. The exempt entity, not the contractor, must purchase any materials to be considered for the exemption. The exempt entity must 'execute the purchase orders for the tangible personal property involved in the contract'. They must directly pay the vendors for the materials and acquire title and assume responsibility for all supplies from the time they arrive at the site until they are incorporated into the property. (Florida Department of Revenue, Technical Assistance Advisement 02A-055, 12/31/02)

(03/15/2003)

In Florida, a dealer who purchased a yacht exclusively for charter purposes qualified for a bare boat exemption because the vessel was never used for anything more than as a rental and chartering. All other activity with the boat, including its movements for boat shows and repairs, were considered to be in the scope of bare boat operations. (TMW Yacht Sales, Inc. v. Department of Revenue, Florida Department of Revenue, DOR 02-9-FOF, December 23, 2002)

(02/15/2003)

In the state of Florida, dispatch charges are considered communication services if the service has one user pushing a button to be immediately connected with a predetermined destination or talk group. It is important to note that to be subject to this tax the service does not necessarily have to be defined as a "commercial mobile radio service". (Technical Assistance Advisement, No. 02A-046, Florida Department of Revenue, October 29, 2002)

(02/15/2003)

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