Fla. Admin. Code Ann. R. 12A-1.085 - Exemption for Qualified Production Companies

(1) For purposes of this rule, a "qualified production company" means any company engaged in this state in the production of motion pictures, made-for-TV motion pictures, television series, commercial advertising, music videos, or sound recordings that has been approved by the Office of Film and Entertainment and has obtained a Certificate of Exemption for Entertainment Industry Qualified Production Company (Form DR-231, incorporated by reference in Rule 12A-1.097, F.A.C.) from the Department.

(2)

(a) Any production company conducting motion picture, television or sound recording business in this state desiring to obtain a Certificate of Exemption for Entertainment Industry Qualified Production Company from the Department must:

1. Complete the Entertainment Industry Tax Exemption Application at filminflorida.com; and,

2. Provide documentation sufficient to substantiate the applicant's claim for qualification as a production company pursuant to Section 288.1258, F.S.

(b)

1. The Department will issue a single Certificate of Exemption for Entertainment Industry Qualified Production Company for a period of 90 consecutive days to a qualified production company, as provided in Section 288.1258(3)(b), F.S. The certificate will expire 90 days after the effective date indicated on the certificate.

2. The Department will issue a Certificate of Exemption for Entertainment Industry Qualified Production Company for a period of 12 consecutive months to a qualified production company that has operated a business in Florida at a permanent address for a period of 12 consecutive months, as provided in Section 288.1258(3)(a), F.S.

(c) Qualified production companies that hold a Certificate of Exemption for Entertainment Industry Qualified Production Company issued for a period of 90 consecutive days may request an extension of their certificates. Qualified production companies that hold a certificate of exemption issued for 12 consecutive months may renew their certificates annually for up to five years. To request an extension or a renewal of a certificate, qualified production companies must complete the Entertainment Industry Tax Exemption Application at filminflorida.com. Upon approval by the Office of Film and Entertainment, an extension to the 90-day certificate or a renewal of the 12-month certificate will be issued by the Department.

(3)

(a) A qualified production company that holds a valid Certificate of Exemption for Entertainment Industry Qualified Production Company may issue a copy of its certificate to the selling dealer or lessor to:

1. Lease, rent, or hold a license in real property used as an integral part of the performance of qualified production services, as provided in Section 212.031(1)(a)9., F.S., tax exempt;

2. Purchase or lease motion picture or video equipment and sound recording equipment, as provided in Section 212.08(5)(f), F.S., tax exempt; or

3. Purchase or lease master tapes, master records, master films, or master video tapes, as provided in Section 212.08(12), F.S., tax exempt.

(b) The selling dealer or lessor is only required to obtain one copy of the qualified production company's Certificate of Exemption for Entertainment Industry Qualified Production Company to make tax exempt sales, as indicated on the certificate, to the company during the effective period indicated on the certificate. A selling dealer or lessor who accepts in good faith the required certificate will not be held liable for any tax due on sales made to a qualified production company during the effective period indicated on the certificate. The selling dealer or lessor must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) In lieu of maintaining a copy of the exemption certificate as provided in paragraph (b), a selling dealer or lessor may document the exempt sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for a single transaction only.

1. A "transaction authorization number" must be obtained by the selling dealer prior to or at the point-of-sale:

a. By using the Department's online Certificate Verification System at floridarevenue.com/taxes/certificates;

b. By using the Department's FL Tax-Verify mobile application; or

c. By calling the Department's automated nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department's online Certificate Verification System, the dealer may key up to five (5) purchaser's certificate numbers into the system. When using the Department's FL Tax-Verify mobile application or the Department's automated nationwide toll-free verification system, the selling dealer is prompted to key in a single purchaser's certificate number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid certificate. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.

4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

(4) A qualified production company that holds a valid Certificate of Exemption for Entertainment Industry Qualified Production Company is not required to pay use tax on fabrication labor associated with the production of a qualified motion picture, as provided in Section 212.06(1)(b), F.S.

(5) Upon expiration of a Certificate of Exemption for Entertainment Industry Qualified Production Company, all certificate holders are required to return their expired certificates to the Department. All certificate holders that cease to do business are required to return their certificates to the Department. Certificates are to be returned to:

Florida Department of Revenue

Account Management

P.O. Box 6480

Tallahassee, Florida 32314-6480.

Notes

Fla. Admin. Code Ann. R. 12A-1.085

Rulemaking Authority 212.18(2), 213.06(1), 288.1258(4)(c) FS. Law Implemented 212.031(1)(a)9., 212.06(1)(b), 212.08(5)(f), (12), 288.1258(4) FS.

New 2-21-77, Amended 5-28-85, Formerly 12A-1.85, Amended 3-12-86, 12-13-88, 10-21-01, 4-26-10, Amended by Florida Register Volume 41, Number 249, December 29, 2015 effective 1/11/2016.

New 2-21-77, Amended 5-28-85, Formerly 12A-1.85, Amended 3-12-86, 12-13-88, 10-21-01, 4-26-10, 1-11-16.