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HomeMy WebLinkAbout2000 - Taxation of Leases® BELLSOUTH BellSouth Cellular Corp. 1100 Peachtree Street, N.E. Atlanta, Georgia 30309-4599 0 0 C C[ CID Florida State Bill 1338 which became effective 7/1/00 addresses the issue of taxation on lease or rental of real property. Section 212.031(1)(5) of the bill was amended to clarify that certain land leases are exempt from sales tax. Subparagraph (5) of section 212.031(1) clearly states that the exception for taxation applies to property, wherever located, on which the following are placed: towers, antennas, cables, accessory structures, or equipment used in the provision of mobile communication services. Based on the above, BellSouth Cellular Corporation takes the position that it is correct to exclude sales and use taxes on both land leases for towers and roof top leases for antennas. If you would Re to discuss this matter further, please contact Stan Robinson at (678) 320-7185 or Robert Landau at (404) 249-3628. Sincerely, Stan Robinson Assistant Controller — Tax Services BellSouth Cellular Corporation Robert Landau Senior Tax Manager BellSouth Ivo( 7'1Jv� � 3 TO: Florida Lessors 0 W FROM: BellSouth Cellular Corporation co SUBJECT: Taxation of leases DATE: July 7, 2000 Florida State Bill 1338 which became effective 7/1/00 addresses the issue of taxation on lease or rental of real property. Section 212.031(1)(5) of the bill was amended to clarify that certain land leases are exempt from sales tax. Subparagraph (5) of section 212.031(1) clearly states that the exception for taxation applies to property, wherever located, on which the following are placed: towers, antennas, cables, accessory structures, or equipment used in the provision of mobile communication services. Based on the above, BellSouth Cellular Corporation takes the position that it is correct to exclude sales and use taxes on both land leases for towers and roof top leases for antennas. If you would Re to discuss this matter further, please contact Stan Robinson at (678) 320-7185 or Robert Landau at (404) 249-3628. Sincerely, Stan Robinson Assistant Controller — Tax Services BellSouth Cellular Corporation Robert Landau Senior Tax Manager BellSouth Ivo( 7'1Jv� � 212 031 Lease or rental of or license in real property (1)(a) It is declared to be the legislative intent that every person is exercising a taxable privilege who engages in the business of renting, leasing, letting, or granting a license for the use of any real property unless such property is: 1. Assessed as agricultural property under s. 193.461. 2. Used exclusively as dwelling units. 3. Property subject to tax on parking, docking, or storage spaces under s. 212.03(6). 4. Recreational property or the common elements of a condominium when subject to a lease between the developer or owner thereof and the condominium association in its own right or as agent for the owners of individual condominium units or the owners of individual condominium units. However, only the lease payments on such property shall be exempt from the tax imposed by this chapter, and any other use made by the owner or the condominium association shall be fully taxable under this chapter. 5. A public or private street or right-of-way and poles, conduits, fixtures, and similar improvements located on such streets or rights-of-way, occupied or used by a utility or franchised cable television company for utility or communications or television purposes. For purposes of this subparagraph, the term "utility" means any person providing utility services as defined in s. 203.012. This exception also applies to property, excluding-buildi�hlocated, on which -antennas, cables-, adjacent accessory structures, or adjacent accessory equipment used in the provision of cellular, enhanced specialized mobile radio, or— Wsonel. communications services are placed - 6. A public street or road which is used for transportation purposes. 7. Property used at an airport exclusively for the purpose of aircraft landing or aircraft taxiing or property used by an airline for the purpose of loading or unloading passengers or property onto or from aircraft or for fueling aircraft. 8. a. Property used at a port authority, as defined in s. 315.02(2), exclusively for the purpose of oceangoing vessels or tugs docking, or such vessels mooring on property used by a port authority for the purpose of loading or unloading passengers or cargo onto or from such a vessel, or property used at a port authority for fueling such vessels, or to the extent that the amount paid for the use of any property at the port is based on the charge for the amount of tonnage actually imported or exported through the port by a tenant. b. The amount charged for the use of any property at the port in excess of the amount charged for tonnage actually imported or exported shall remain subject to tax except as provided in sub -subparagraph a.