SB 116 — Taxation of Investigative Services

Florida Senate - 2023 CS for SB 116 By Senatorthe RodriguezCommittee 40-00304-23on 2023116__Commerce Aand billTourism; to be entitled An act relating to taxation of investigative services;

and Senator Rodriguez 577-02079-23 2023116c1 A bill to be entitled An act relating to taxation of investigation services;

defining the termterms “private investigation services” and “small private investigative agency”;

providing a sales tax exemption for the sale of investigativeprivate investigation services by a small private investigative agency to a client;

providing applicability;

In addition, exemptions provided to any entity by this subsection do not inure to any transaction that is otherwise taxable under this chapter unless the entity has Page 1 of 3 CODING:

Florida Senate - 2023 CS for SB 116 40-00304-23577-02079-23 2023116__2023116c1 this subsection do not inure to any transaction that is otherwise taxable under this chapter unless the entity has obtained a sales tax exemption certificate from the department or the entity obtains or provides other documentation as required by the department.

As used in this paragraph, the termterm: “small private investigative agency” means a private investigator licensed under s.

493.6201 which:

Employs“Private threeinvestigation orservices” fewerhas full-timethe orsame part-timemeaning employees,as includingthe thoseterm performing“private servicesinvestigation” pursuant to an employee leasing arrangement as defined in s.

493.6101(17).

b.

“Small private investigative agency” means a private investigator licensed under s.

493.6201 which:

(I) Employs three or fewer full-time or part-time employees, including those performing services pursuant to an employee leasing arrangement as defined in s.

and b.(II) During the previous calendar year, performed private investigation services otherwise taxable under this chapter in which the charges for the services performed were less than $150,000 for all its businesses related through common ownership.

Reported less than $150,000 in taxable sales during the previous calendar year for providing private investigative services as defined in s.

493.6101(17) for all its businesses related through common ownership.

The sale of investigativeprivate investigation services by a small private investigative agency to a client is exempt from the tax imposed by this chapter.

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Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for SB 116 577-02079-23 2023116c1 3.

The exemption provided by this paragraph may not apply in the first calendar year a small private investigative agency conducts sales of private investigation services taxable under this chapter.

(2) Notwithstanding any other law, emergency rules adopted pursuant to this section are effective for 6 months after Pageadoption 2and may be renewed during the pendency of 3procedures CODING:to adopt permanent rules addressing the subject of the emergency rules.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 SB 116 40-00304-23 2023116__ adoption and may be renewed during the pendency of procedures to adopt permanent rules addressing the subject of the emergency rules.