H 791

F   L      O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
1A bill to be entitled
2An act relating to sales taxes; providing a short
3title; amending s. 212.05, F.S.; revising upward a
4specified sales and use tax; amending s. 212.20, F.S.;
5requiring a certain percentage of collected revenues
6to be used for a specified purpose; creating s.
7212.056, F.S.; requiring a specified surtax when
8property is transferred; providing for collection of
9such tax; requiring the Department of Revenue to
10return certain funds; providing a contingent effective
11date.
12
13Be It Enacted by the Legislature of the State of Florida:
14
15Section 1.        This act may be cited as the "Freedom 3 – The
16School and Safety Revenue Replacement Act."
17Section 2.        Paragraph (a) of subsection (1) of section
18212.05, Florida Statutes, is amended to read:
19212.05      Sales, storage, use tax.—It is hereby declared to
20be the legislative intent that every person is exercising a
21taxable privilege who engages in the business of selling
22tangible personal property at retail in this state, including
23the business of making or facilitating remote sales; who rents
24or furnishes any of the things or services taxable under this
25chapter; or who stores for use or consumption in this state any
  Page 1 of 10
 CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L   O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
 HB 791  2026
26    item or article of tangible personal property as defined herein
27    and who leases or rents such property within the state.
28(1)      For the exercise of such privilege, a tax is levied on
29    each taxable transaction or incident, which tax is due and
30    payable as follows:
31(a)1.a.      At the rate of 9 6 percent of the sales price of
32    each item or article of tangible personal property when sold at
33    retail in this state, computed on each taxable sale for the
34    purpose of remitting the amount of tax due the state, and
35    including each and every retail sale.
36b.      Each occasional or isolated sale of an aircraft, boat,
37    mobile home, or motor vehicle of a class or type which is
38    required to be registered, licensed, titled, or documented in
39    this state or by the United States Government shall be subject
40    to tax at the rate provided in this paragraph. The department
41    shall by rule adopt any nationally recognized publication for
42    valuation of used motor vehicles as the reference price list for
43    any used motor vehicle which is required to be licensed pursuant
44    to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
45    party to an occasional or isolated sale of such a vehicle
46    reports to the tax collector a sales price which is less than 80
47    percent of the average loan price for the specified model and
48    year of such vehicle as listed in the most recent reference
49    price list, the tax levied under this paragraph shall be
50    computed by the department on such average loan price unless the
  Page 2 of 10
     CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L   O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
 HB 791  2026
51    parties to the sale have provided to the tax collector an
52    affidavit signed by each party, or other substantial proof,
53    stating the actual sales price. Any party to such sale who
54    reports a sales price less than the actual sales price is guilty
55    of a misdemeanor of the first degree, punishable as provided in
56    s. 775.082 or s. 775.083. The department shall collect or
57    attempt to collect from such party any delinquent sales taxes.
58    In addition, such party shall pay any tax due and any penalty
59    and interest assessed plus a penalty equal to twice the amount
60    of the additional tax owed. Notwithstanding any other provision
61    of law, the Department of Revenue may waive or compromise any
62    penalty imposed pursuant to this subparagraph.
632.      This paragraph does not apply to the sale of a boat or
64    aircraft by or through a registered dealer under this chapter to
65    a purchaser who, at the time of taking delivery, is a
66    nonresident of this state, does not make his or her permanent
67    place of abode in this state, and is not engaged in carrying on
68    in this state any employment, trade, business, or profession in
69    which the boat or aircraft will be used in this state, or is a
70    corporation none of the officers or directors of which is a
71    resident of, or makes his or her permanent place of abode in,
72    this state, or is a noncorporate entity that has no individual
73    vested with authority to participate in the management,
74    direction, or control of the entity's affairs who is a resident
75    of, or makes his or her permanent abode in, this state. For
  Page 3 of 10
     CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A     H   O   U   S   E     O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
76     purposes of this exemption, either a registered dealer acting on
77     his or her own behalf as seller, a registered dealer acting as
78     broker on behalf of a seller, or a registered dealer acting as
79     broker on behalf of the nonresident purchaser may be deemed to
80     be the selling dealer. This exemption is not allowed unless:
81a.      The nonresident purchaser removes a qualifying boat, as
82     described in sub-subparagraph f., from this state within 90 days
83     after the date of purchase or extension, or the nonresident
84     purchaser removes a nonqualifying boat or an aircraft from this
85     state within 10 days after the date of purchase or, when the
86     boat or aircraft is repaired or altered, within 20 days after
87     completion of the repairs or alterations; or if the aircraft
88     will be registered in a foreign jurisdiction and:
89(I)     Application for the aircraft's registration is
90     properly filed with a civil airworthiness authority of a foreign
91     jurisdiction within 10 days after the date of purchase;
92(II)        The nonresident purchaser removes the aircraft from
93     this state to a foreign jurisdiction within 10 days after the
94     date the aircraft is registered by the applicable foreign
95     airworthiness authority; and
96(III)        The aircraft is operated in this state solely to
97     remove it from this state to a foreign jurisdiction.
98
99     For purposes of this sub-subparagraph, the term "foreign
100    jurisdiction" means any jurisdiction outside of the United
  Page 4 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
101    States or any of its territories;
102b.      The nonresident purchaser, within 90 days after the
103    date of departure, provides the department with written proof
104    that the nonresident purchaser licensed, registered, titled, or
105    documented the boat or aircraft outside this state. If such
106    written proof is unavailable, within 90 days the nonresident
107    purchaser must provide proof that the nonresident purchaser
108    applied for such license, title, registration, or documentation.
109    The nonresident purchaser shall forward to the department proof
110    of title, license, registration, or documentation upon receipt;
111c.      The nonresident purchaser, within 30 days after
112    removing the boat or aircraft from this state, furnishes the
113    department with proof of removal in the form of receipts for
114    fuel, dockage, slippage, tie-down, or hangaring from outside of
115    Florida. The information so provided must clearly and
116    specifically identify the boat or aircraft;
117d.      The selling dealer, within 30 days after the date of
118    sale, provides to the department a copy of the sales invoice,
119    closing statement, bills of sale, and the original affidavit
120    signed by the nonresident purchaser affirming that the
121    nonresident purchaser qualifies for exemption from sales tax
122    pursuant to this subparagraph and attesting that the nonresident
123    purchaser will provide the documentation required to
124    substantiate the exemption claimed under this subparagraph;
125e.      The seller makes a copy of the affidavit a part of his
  Page 5 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A     H   O   U   S   E     O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
126    or her record for as long as required by s. 213.35; and
127f.      Unless the nonresident purchaser of a boat of 5 net
128    tons of admeasurement or larger intends to remove the boat from
129    this state within 10 days after the date of purchase or when the
130    boat is repaired or altered, within 20 days after completion of
131    the repairs or alterations, the nonresident purchaser applies to
132    the selling dealer for a decal which authorizes 90 days after
133    the date of purchase for removal of the boat. The nonresident
134    purchaser of a qualifying boat may apply to the selling dealer
135    within 60 days after the date of purchase for an extension decal
136    that authorizes the boat to remain in this state for an
137    additional 90 days, but not more than a total of 180 days,
138    before the nonresident purchaser is required to pay the tax
139    imposed by this chapter. The department is authorized to issue
140    decals in advance to dealers. The number of decals issued in
141    advance to a dealer shall be consistent with the volume of the
142    dealer's past sales of boats which qualify under this sub-
143    subparagraph. The selling dealer or his or her agent shall mark
144    and affix the decals to qualifying boats in the manner
145    prescribed by the department, before delivery of the boat.
146(I)      The department is hereby authorized to charge dealers
147    a fee sufficient to recover the costs of decals issued, except
148    the extension decal shall cost $425.
149(II)        The proceeds from the sale of decals will be
150    deposited into the administrative trust fund.
  Page 6 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A     H   O   U   S   E     O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
151(III)        Decals shall display information to identify the
152    boat as a qualifying boat under this sub-subparagraph,
153    including, but not limited to, the decal's date of expiration.
154(IV)        The department is authorized to require dealers who
155    purchase decals to file reports with the department and may
156    prescribe all necessary records by rule. All such records are
157    subject to inspection by the department.
158(V)     Any dealer or his or her agent who issues a decal
159    falsely, fails to affix a decal, mismarks the expiration date of
160    a decal, or fails to properly account for decals will be
161    considered prima facie to have committed a fraudulent act to
162    evade the tax and will be liable for payment of the tax plus a
163    mandatory penalty of 200 percent of the tax, and shall be liable
164    for fine and punishment as provided by law for a conviction of a
165    misdemeanor of the first degree, as provided in s. 775.082 or s.
166    775.083.
167(VI)        Any nonresident purchaser of a boat who removes a
168    decal before permanently removing the boat from this state, or
169    defaces, changes, modifies, or alters a decal in a manner
170    affecting its expiration date before its expiration, or who
171    causes or allows the same to be done by another, will be
172    considered prima facie to have committed a fraudulent act to
173    evade the tax and will be liable for payment of the tax plus a
174    mandatory penalty of 200 percent of the tax, and shall be liable
175    for fine and punishment as provided by law for a conviction of a
  Page 7 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
176    misdemeanor of the first degree, as provided in s. 775.082 or s.
177    775.083.
178(VII)       The department is authorized to adopt rules
179    necessary to administer and enforce this subparagraph and to
180    publish the necessary forms and instructions.
181(VIII)       The department is hereby authorized to adopt
182    emergency rules pursuant to s. 120.54(4) to administer and
183    enforce the provisions of this subparagraph.
184
185    If the nonresident purchaser fails to remove the qualifying boat
186    from this state within the maximum 180 days after purchase or a
187    nonqualifying boat or an aircraft from this state within 10 days
188    after purchase or, when the boat or aircraft is repaired or
189    altered, within 20 days after completion of such repairs or
190    alterations, or permits the boat or aircraft to return to this
191    state within 6 months after the date of departure, except as
192    provided in s. 212.08(7)(eee), or if the nonresident purchaser
193    fails to furnish the department with any of the documentation
194    required by this subparagraph within the prescribed time period,
195    the nonresident purchaser is liable for use tax on the cost
196    price of the boat or aircraft and, in addition thereto, payment
197    of a penalty to the Department of Revenue equal to the tax
198    payable. This penalty is in lieu of the penalty imposed by s.
199    212.12(2). The maximum 180-day period following the sale of a
200    qualifying boat tax-exempt to a nonresident may not be tolled
  Page 8 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
201    for any reason.
202Section 3.        Paragraphs (a) through (d) of subsection (6) of
203    section 212.20, Florida Statutes, are redesignated as paragraphs
204    (b) through (e), respectively, and a new paragraph (a) is added
205    to that subsection, to read:
206212.20      Funds collected, disposition; additional powers of
207    department; operational expense; refund of taxes adjudicated
208    unconstitutionally collected.—
209(6)     Distribution of all proceeds under this chapter and
210    ss. 202.18(1)(b) and (2)(b) and 203.01(1)(a)3. is as follows:
211(a)     One-third of all proceeds collected under s.
212    212.05(1)(a) shall be used to fund the Florida Education Finance
213    Program.
214Section 4.        Section 212.056, Florida Statutes, is created
215    to read:
216212.056      Property Sales Surtax.—
217(1)     On any transaction required to pay the tax under s.
218    201.02 or s. 201.133, there shall be a sales tax of 5 percent on
219    the consideration.
220(2)     This tax shall be collected in the same manner as the
221    taxes under ss. 201.02 and 201.133.
222(3)     The Department of Revenue shall pay to the governing
223    authority of each county all surtaxes collected pursuant to this
224    section related to property located in such county.
225Section 5.        This act shall take effect on the effective
  Page 9 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T   I   V   E   S
  HB 791  2026
226    date of the amendment to the State Constitution proposed by HJR
227    787 or a similar joint resolution having substantially the same
228    specified intent and purpose, if such amendment to the State
229    Constitution is approved at the next general election or at an
230    earlier special election specifically authorized by law for that
231    purpose.
  Page 10 of 10
      CODING: Words stricken are deletions; words underlined are additions.
  hb791-00