Florida Senate - 2010 SB 1406
By Senator Lawson
6-01386-10 20101406__
1 A bill to be entitled
2 An act relating to taxation; creating ss. 199.0125,
3 199.0235, 199.0325, 199.0335, 199.0425, 199.0525,
4 199.0575, 199.0625, 199.1035, 199.10555, 199.1065,
5 199.1755, and 199.1855, F.S.; recreating the annual
6 intangible personal property tax; providing a short
7 title; providing definitions; providing for imposition
8 of the annual tax; specifying a separate tax rate for
9 securities in a Florida’s Future Investment Fund;
10 specifying nonapplication; specifying due date of
11 annual tax; providing for a discount for early
12 payments; providing requirements and procedures for
13 annual tax returns and payment of the annual tax;
14 providing for corporate election to pay stockholders’
15 annual tax; providing requirements for annual tax
16 information reports; providing requirements for the
17 basis of assessments and valuation of intangible
18 personal property; providing for a contaminated site
19 rehabilitation tax credit; providing requirements,
20 procedures, and limitations; providing for a credit
21 for taxes imposed by other states; specifying
22 requirements for taxable situs of intangible personal
23 property; exempting certain property from the annual
24 and nonrecurring intangible taxes; amending ss. 28.35,
25 192.0105, 192.032, 192.042, 192.091, 193.114, 196.015,
26 196.199, 199.133, 199.183, 199.218, 199.232, 199.282,
27 199.292, 199.303, 212.02, 213.053, 213.054, 213.27,
28 650.05, and 733.702, F.S., to conform provisions to
29 the creation of the annual intangible personal
30 property tax; providing for application of certain
31 collection, administration, and enforcement provisions
32 to taxation of certain leaseholds; authorizing the
33 Department of Revenue to adopt emergency implementing
34 rules for a certain time; providing legislative
35 findings and intent; amending s. 220.03, F.S.;
36 revising a definition; defining the terms “tax haven”
37 and “water’s edge group”; amending s. 220.13, F.S.;
38 conforming a cross-reference; redefining the term
39 “adjusted federal income” to limit the subtraction of
40 certain deductions and certain carryovers; requiring
41 the subtraction of certain dividends from taxable
42 income; creating s. 220.136, F.S.; providing rules and
43 criteria to determine if a corporation is a member of
44 a water’s edge group; creating s. 220.1363, F.S.;
45 providing a reporting method for a water’s edge group;
46 providing for the apportionment of income to the
47 state; requiring a member of a water’s edge group
48 having nexus with this state to file a single return
49 for the water’s edge group; providing for the
50 determination of income for a member of a water’s edge
51 group having a different tax year than the water’s
52 edge group; requiring a water’s edge group return to
53 include a computational schedule; requiring a water’s
54 edge group to file a domestic disclosure spreadsheet
55 along with its return; authorizing the Department of
56 Revenue to adopt rules; amending s. 220.14, F.S.;
57 providing for the proration of an exemption during a
58 leap year; limiting a water’s edge group to a single
59 claim of a specified exemption; amending s. 220.15,
60 F.S.; deleting provisions relating to affiliated
61 groups with respect to certain sales of a financial
62 institution; amending s. 220.183, F.S.; deleting
63 provisions relating to affiliated groups with respect
64 to community contribution tax credits; amending s.
65 220.1845, F.S.; deleting provisions relating to
66 affiliated groups with respect to the contaminated
67 site rehabilitation tax credit; amending s. 220.187,
68 F.S.; deleting provisions relating to affiliated
69 groups with respect to the tax credit for
70 contributions to nonprofit scholarship funding
71 organizations; amending s. 220.191, F.S.; deleting
72 provisions relating to affiliated groups with respect
73 to the capital investment tax credit; amending s.
74 220.192, F.S.; deleting provisions relating to
75 affiliated groups with respect to the renewable energy
76 technologies investment tax credit; amending s.
77 220.193, F.S.; deleting provisions relating to
78 affiliated groups with respect to the Florida
79 renewable energy production tax credit; amending s.
80 220.51, F.S.; deleting provisions relating to the
81 rulemaking authority of the Department of Revenue with
82 respect to consolidated reporting for affiliated
83 groups; amending ss. 220.1845, 220.64, and 376.30781,
84 F.S.; conforming cross-references and conforming
85 provisions to the creation of the annual intangible
86 personal property tax; providing transitional rules
87 for corporate income tax returns filed by water’s edge
88 groups and affiliated groups of corporations;
89 specifying the allocation of funds that are recaptured
90 under the act; repealing s. 220.131, F.S., relating to
91 adjusted federal income for affiliated groups;
92 requiring deposit of certain funds into the
93 Educational Enhancement Trust Fund; specifying certain
94 allocations of appropriations from the fund; providing
95 legislative intent relating to uses of funds;
96 providing authority for certain entities as to how
97 best to use certain funds; providing effective dates.
98
99 Be It Enacted by the Legislature of the State of Florida:
100
101 Section 1. Effective January 1, 2011, sections 199.0125,
102 199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 199.0575,
103 199.0625, 199.1035, 199.10555, 199.1065, 199.1755, and 199.1855,
104 Florida Statutes, are created to read:
105 199.0125 Short title.—Sections 199.0125-199.1855 may be
106 cited as the “Millionaire’s Tax Act.”
107 199.0235 Definitions.—As used in this chapter:
108 (1) “Abroad” means in one or more foreign nations; in the
109 colonies, dependencies, possessions, or territories of a foreign
110 nation or of the United States; or in the Commonwealth of Puerto
111 Rico.
112 (2)(a) “Affiliated group” means one or more chains of
113 corporations or limited liability companies connected through
114 stock ownership or membership interest in a limited liability
115 company with a common parent corporation or limited liability
116 company, for which:
117 1. Stock or membership interest in a limited liability
118 company possessing at least 80 percent of the voting power of
119 all classes of stock or membership interest in a limited
120 liability company and at least 80 percent of each class of the
121 nonvoting stock or membership interest in a limited liability
122 company of each corporation or limited liability company, except
123 for the common parent corporation or limited liability company,
124 is owned directly by one or more of the other corporations or
125 limited liability companies.
126 2. The common parent corporation or limited liability
127 company directly owns stock or membership interest in a limited
128 liability company possessing at least 80 percent of the voting
129 power of all classes of stock or membership interest in a
130 limited liability company and at least 80 percent of each class
131 of the nonvoting stock or membership interest in a limited
132 liability company of at least one of the other corporations or
133 limited liability companies.
134 (b) As used in this subsection, the terms “nonvoting stock”
135 and “membership interest in a limited liability company” do not
136 include nonvoting stock or membership interest in a limited
137 liability company which is limited and preferred as to
138 dividends. For purposes of this chapter, a common parent may be
139 a corporation or a limited liability company.
140 (3) “Banking organization” means:
141 (a) A bank organized and existing under the laws of this
142 state;
143 (b) A national bank organized and existing pursuant to the
144 provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq.,
145 and maintaining its principal office in this state;
146 (c) An Edge Act corporation organized pursuant to the
147 provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
148 611 et seq., and maintaining an office in this state;
149 (d) An international bank agency licensed pursuant to the
150 laws of this state;
151 (e) A federal agency licensed pursuant to ss. 4 and 5 of
152 the International Banking Act of 1978 to maintain an office in
153 this state;
154 (f) A savings association organized and existing under the
155 laws of this state;
156 (g) A federal association organized and existing pursuant
157 to the provisions of the Home Owners’ Loan Act of 1933, 12
158 U.S.C. ss. 1461 et seq., and maintaining its principal office in
159 this state; or
160 (h) An export finance corporation organized in this state
161 and existing pursuant to the provisions of part V of chapter
162 288.
163 (4) A resident has a “beneficial interest” in a trust if
164 the resident has a vested interest, even if subject to
165 divestment, which includes at least a current right to income
166 and either a power to revoke the trust or a general power of
167 appointment, as defined in 26 U.S.C. s. 2041(b)(1).
168 (5) “Department” means the Department of Revenue.
169 (6) “Intangible personal property” means all personal
170 property that is not in itself intrinsically valuable, but that
171 derives its chief value from that which it represents,
172 including, but not limited to:
173 (a) All stocks or shares of incorporated or unincorporated
174 companies, business trusts, and mutual funds.
175 (b) All notes, bonds, and other obligations for the payment
176 of money.
177 (c) All condominium and cooperative apartment leases of
178 recreation facilities, land leases, and leases of other commonly
179 used facilities.
180 (d) Except for any leasehold or other possessory interest
181 described in s. 4(a), Art. VII of the State Constitution or s.
182 196.199(7), all leasehold or other possessory interests in real
183 property owned by the United States, the state, any political
184 subdivision of the state, any municipality of the state, or any
185 agency, authority, or other public body corporate of the state,
186 which are undeveloped or predominantly used for residential or
187 commercial purposes and upon which rental payments are due.
188 (7) “International banking facility” means a set of asset
189 and liability accounts segregated on the books and records of a
190 banking organization that includes only international banking
191 facility deposits, borrowings, and extensions of credit as those
192 terms are defined pursuant to s. 655.071(2).
193 (8) “International banking transaction” means:
194 (a) The financing of the exportation from, or the
195 importation into, the United States or between jurisdictions
196 abroad of tangible personal property or services;
197 (b) The financing of the production, preparation, storage,
198 or transportation of tangible personal property or services
199 which are identifiable as being directly and solely for export
200 from, or import into, the United States or between jurisdictions
201 abroad;
202 (c) The financing of contracts, projects, or activities to
203 be performed substantially abroad, except those transactions
204 secured by a mortgage, deed of trust, or other lien upon real
205 property located in this state;
206 (d) The receipt of deposits or borrowings or the extensions
207 of credit by an international banking facility, except the loan
208 or deposit of funds secured by mortgage, deed of trust, or other
209 lien upon real property located in this state; or
210 (e) Entering into foreign exchange trading or hedging
211 transactions in connection with the activities described in
212 paragraph (d).
213 (9) “Ministerial function” means an act the performance of
214 which does not involve the use of discretion or judgment.
215 (10) “Money” includes, without limitation, United States
216 legal tender, certificates of deposit, cashier’s and certified
217 checks, bills of exchange, drafts, the cash equivalent of
218 annuities and life insurance policies, and similar instruments,
219 which are held by a taxpayer, or deposited with or held by a
220 banking organization or any other person.
221 (11) “Person” means any individual, firm, partnership,
222 joint adventure, syndicate, or other group or combination acting
223 as a unit, association, corporation, estate, trust, business
224 trust, trustee, personal representative, receiver, or other
225 fiduciary and includes the plural as well as the singular.
226 (12) “Processing activity” means an activity undertaken to
227 administer or service intangible personal property in accordance
228 with such terms, guidelines, criteria, or directions as are
229 provided solely by the owner of the property. Methods, systems,
230 or techniques chosen by the processor to implement such terms,
231 guidelines, criteria, or directions are not considered the
232 exercise of management or control.
233 (13) “Taxpayer” means any person liable for taxes imposed
234 under this chapter and any heir, successor, assignee, and
235 transferee of any such person.
236 199.0325 Levy of annual tax.—An annual tax of 2 mills is
237 imposed on each dollar of the just valuation of all intangible
238 personal property that has a taxable situs in this state, except
239 for notes and other obligations for the payment of money, other
240 than bonds, that are secured by a mortgage, deed of trust, or
241 other lien upon real property situated in this state. This tax
242 shall be assessed and collected as provided in this chapter.
243 199.0335 Securities in a Florida’s Future Investment Fund;
244 tax rate.—
245 (1) Notwithstanding the provisions of this chapter, the tax
246 imposed under s. 199.0325 on securities in a Florida’s Future
247 Investment Fund applies at a rate of 0.85 mill when the average
248 daily balance in such funds exceeds $2 billion and at a rate of
249 0.70 mill when the average daily balance in such funds exceeds
250 $5 billion.
251 (2) This section shall not apply in any year in which the
252 revenues of the foundation in the previous calendar year are
253 less than the tax savings allowed by this section. The term “tax
254 savings” means the difference between the tax that would be
255 imposed pursuant to s. 199.0325 and the tax rate specified in
256 subsection (1).
257 199.0425 Due date of annual tax.—
258 (1) The annual tax on intangible personal property shall be
259 due and payable on June 30 of each year. Payment of the tax
260 shall be made to the department upon filing of the return
261 required by s. 199.0525. A return mailed to the department shall
262 be considered timely filed if the return bears a postmark no
263 later than the due date.
264 (2) A discount for early payment of the annual tax shall be
265 allowed as follows: for payment on or before the last day of
266 February, 4 percent; for payment on or before March 31, 3
267 percent; for payment on or before April 30, 2 percent; and for
268 payment after April 30 but on or before May 31, 1 percent.
269 199.0525 Annual tax returns; payment of annual tax.—
270 (1) An annual intangible tax return must be filed with the
271 department by each corporation authorized to do business in this
272 state or doing business in this state and by each person,
273 regardless of domicile, who on January 1 owns, controls, or
274 manages intangible personal property which has a taxable situs
275 in this state. For purposes of this chapter, the terms “control”
276 or “manage” do not include any ministerial function or any
277 processing activity. The return shall be due on June 30 of each
278 year. It shall list separately the character, description, and
279 just valuation of all such property.
280 (2) A person, corporation, agent, or fiduciary is not
281 required to pay the annual tax in any year when the aggregate
282 annual tax upon the intangible personal property, after
283 exemptions but before application of any discount for early
284 filing, would be less than $60. In such case, an annual return
285 is not required. Agents and fiduciaries shall report for each
286 person for whom they hold intangible personal property if the
287 aggregate annual tax on such person is $60 or more.
288 (3) A corporation having no intangible tax liability, and
289 required to file an annual report pursuant to s. 607.1622, is
290 not required to file the annual intangible tax return required
291 by this section.
292 (4) A husband and wife may file a joint return with regard
293 to all intangible personal property held jointly or individually
294 by them. They shall then be jointly liable for the payment of
295 the annual tax.
296 (5) A trustee of a trust is not responsible for filing
297 returns for the trust’s intangible personal property and is not
298 required to pay any annual tax on such property, although the
299 department may require the trustee to file an informational
300 return.
301 (6) Each resident of this state with a beneficial interest
302 as defined in s. 199.0235(4) in a trust is responsible for
303 filing an annual return for the resident’s equitable share of
304 the trust’s intangible personal property and paying the annual
305 tax on such property. The trustee of a trust may file an annual
306 return and pay the tax on the equitable shares of all residents
307 of this state having beneficial interests, in which case the
308 residents need not file an annual return for such property or
309 pay such tax.
310 (7) The personal representative or curator of an estate in
311 this state is primarily responsible for filing an annual return
312 for the estate’s intangible personal property and paying the
313 annual tax on it. The heirs or devisees, however, may
314 individually file an annual return for their equitable shares of
315 the estate’s intangible personal property and pay the tax on
316 such shares, in which case the personal representative or
317 curator need not file an annual return on such property or pay
318 such tax, although the department may require the personal
319 representative or curator to file an informational return.
320 (8) The guardian of the property of an incompetent resident
321 of this state shall file an annual return for the incompetent’s
322 intangible personal property and pay the annual tax on such
323 property. The custodian of a minor resident of this state under
324 a gifts-to-minors or similar act shall file an annual return for
325 the minor’s intangible personal property which is subject to the
326 custodianship and pay the annual tax on such property.
327 (9) If an agent other than a trustee has control or
328 management of intangible personal property, the principal is
329 primarily responsible for filing an annual return for such
330 property and paying the annual tax on such property, but the
331 agent shall file an annual return for property on behalf of the
332 principal and pay the annual tax on such property if the
333 principal fails to do so. The department may in any case require
334 the agent to file an informational return.
335 (10) An affiliated group may elect to file a consolidated
336 return for any year. The election shall be made by timely filing
337 a consolidated return. Once made, an election may not be revoked
338 and is binding for the tax year. The mere filing of a
339 consolidated return does not in itself provide a business situs
340 in this state for intangible personal property held by a
341 corporation. The fact that members of an affiliated group own
342 stock in corporations or membership interest in limited
343 liability companies that do not qualify under the stock
344 ownership or membership interest in a limited liability company
345 requirements as members of an affiliated group shall not
346 preclude the filing of a consolidated return on behalf of the
347 qualified members. If a consolidated return is filed,
348 intercompany accounts, including the capital stock or membership
349 interest in a limited liability company of an includable
350 corporation or limited liability company, other than the parent,
351 owned by another includable corporation or limited liability
352 company, are not subject to the annual tax. However, capital
353 stock, or membership interest in a limited liability company,
354 and other intercompany accounts of a nonqualified member of the
355 affiliated group are subject to the annual tax. Each
356 consolidated return must be accompanied by documentation
357 identifying all intercompany accounts and containing such other
358 information as the department may require. Failure to timely
359 file a consolidated return shall not prejudice the taxpayer’s
360 right to file a consolidated return, provided the failure to
361 file a consolidated return is limited to 1 year and the
362 taxpayer’s intent to file a consolidated return is evidenced by
363 the taxpayer having filed a consolidated return for the 3 years
364 prior to the year the return was not timely filed.
365 (11) An annual return for securities held in margin
366 accounts by a security broker not acting as a fiduciary shall be
367 filed, and the annual tax on such securities shall be paid, by
368 the customer owning them. The security broker is not required to
369 file an annual return or pay the tax on such securities.
370 (12) Except as otherwise provided in this section, the
371 owner of intangible personal property is liable for the payment
372 of annual tax on such property, and any other person required to
373 file an annual return for such property is liable for the tax if
374 the owner fails to pay the tax.
375 (13) If a bank or savings association, as defined in s.
376 220.62, acts as a fiduciary or agent of a trust other than as a
377 trustee, the bank or savings association is not responsible for
378 filing an annual return for the trust’s intangible personal
379 property and is not required to pay any annual tax on such
380 property, and the management or control of the bank or savings
381 association shall not be used as the basis for imposing any
382 annual tax on any person or any assets of the trust. If a person
383 acts as a fiduciary or agent for purposes of managing intangible
384 assets owned by another person, such intangible assets shall not
385 have a taxable situs in this state pursuant to s. 199.1755
386 solely by virtue of the management or control of such assets by
387 the person who is not the owner of the assets.
388 (14)(a) Except as provided in paragraph (b), each bank and
389 financial organization filing annual intangible tax returns for
390 its customers shall file return information for taxes due
391 January 1, 2011, and thereafter using machine-sensible media.
392 The information required by this subsection must be reported by
393 banks or financial organizations on machine-sensible media,
394 using specifications and instructions of the department. A bank
395 or financial organization that demonstrates to the satisfaction
396 of the department that a hardship exists is not required to file
397 intangible tax returns for its customers using machine-sensible
398 media. The department shall adopt rules necessary to administer
399 this paragraph.
400 (b) A taxpayer may choose to file an annual intangible
401 personal property tax return in a form initiated through an
402 electronic data interchange using an advanced encrypted
403 transmission by means of the Internet or other suitable
404 transmission. The department shall prescribe by rule the format
405 and instructions necessary for such filing to ensure a full
406 collection of taxes due. The acceptable method of transfer, the
407 method, form, and content of the electronic data interchange,
408 and the means, if any, by which the taxpayer will be provided
409 with an acknowledgment shall be prescribed by the department.
410 199.0575 Corporate election to pay stockholders’ annual
411 tax.—
412 (1) Each corporation incorporated or qualified to do
413 business in this state may elect each tax year to pay the annual
414 tax on any class of its stock, as agent for its stockholders in
415 this state holding such stock.
416 (2) To make the election, the corporation shall:
417 (a) File written notice with the department on or before
418 June 30 of the year for which the election is made.
419 (b) File an annual return with respect to such stock and
420 its own intangible personal property.
421 (c) Furnish its stockholders in this state with written
422 notice, on or before April 1 of the year for which the election
423 is made, that the election is being made, including a
424 description of the class or classes of stock which are affected.
425 A corporation making the election under this subsection shall
426 certify on its notice to the department that its stockholders
427 were timely notified of the election.
428 (3) An election is not valid unless timely notice of the
429 election is given to the department under paragraph (2)(a). Once
430 made, an election may not be amended or revoked and is binding
431 for the tax year.
432 199.0625 Annual tax information reports.—
433 (1)(a) On or before June 30 of each year, each security
434 dealer and investment adviser registered under the laws of this
435 state shall file with the department a position statement as of
436 December 31 of the preceding year for each customer whose
437 mailing address is in this state or a statement that the
438 security dealer or investment adviser does not hold securities
439 on account for any customer whose mailing address is in this
440 state. The position statement shall include the customer’s name,
441 address, social security number, or federal identification
442 number; the number of units, value, and description, including
443 the Committee on Uniform Security Identification Procedures
444 (CUSIP) number, if any, of all securities held by the dealer or
445 adviser for the customer; and such other information as the
446 department may reasonably require. The dealer or adviser shall
447 report the information required by this paragraph on magnetic
448 media, using specifications and instructions of the department,
449 unless the dealer or adviser demonstrates that an undue hardship
450 exists.
451 (b)1. The department may require security dealers and
452 investment advisers registered in this state to transmit once
453 every 2 years a copy of the department’s intangible tax brochure
454 to each customer of the dealer or advisor whose mailing address
455 is in this state.
456 2. The department may require property appraisers to send,
457 at such times and in such manner as the department and the
458 property appraisers jointly determine, a copy of the
459 department’s intangible tax brochure to each owner of property
460 in this state.
461 (2) Each fiduciary shall serve the department with a copy
462 of each inventory required to be prepared or filed in the
463 circuit court under general law or rules adopted by the Supreme
464 Court relating to decedent’s estates, trusts, or guardianships.
465 Any such inventory required to be filed in the circuit court may
466 not be approved by the court until such copy as required by this
467 subsection has been filed with the department. When an inventory
468 is not required to be filed in the circuit court, the personal
469 representative of a decedent’s estate shall serve the department
470 with a copy of one inventory as provided in s. 733.604, and each
471 other fiduciary shall file a return relating to such information
472 as shall be prescribed by rule of the department.
473 199.1035 Basis of assessment; valuation.—All intangible
474 personal property shall be subject to the annual tax at its just
475 valuation as of January 1 of each year. Such property shall be
476 valued in the following manner:
477 (1) Shares of stock of corporations, or any interest of a
478 limited partner in any limited partnership, regularly listed on
479 any public stock exchange or regularly traded over-the-counter
480 shall be valued at their closing prices on the last business day
481 of the previous calendar year.
482 (2) Shares or units of companies or trusts registered under
483 the Investment Company Act of 1940, as amended, including mutual
484 funds, money market funds, and unit investment trusts where such
485 shares or units are not exempt under s. 199.1855, shall be
486 valued at the net asset value of such shares or units on the
487 last business day of the previous calendar year.
488 (3) Bonds regularly listed on any public stock exchange or
489 regularly traded over-the-counter shall be valued at their
490 closing bid prices on the last business day of the previous
491 calendar year.
492 (4) Shares of stocks, bonds, or similar instruments of
493 corporations not listed on any public stock exchange or not
494 regularly traded over-the-counter shall be valued as of January
495 1 of each year on the basis of those factors customarily
496 considered in determining fair market value.
497 (5) Accounts receivable shall be valued at their face value
498 as of January 1 of each year, less a reasonable allowance for
499 uncollectible accounts.
500 (6) All notes and other obligations shall have a value
501 equal to their unpaid balance as of January 1 of each year,
502 unless the taxpayer can establish a lesser value upon proof
503 satisfactory to the department.
504 (7) All other forms of intangible personal property shall
505 be valued on the basis of factors customarily considered in
506 determining fair market value.
507 (8) Stocks or shares of a savings association or middle
508 tier stock holding company, held by a parent mutual holding
509 company, the depositors of which are members of the mutual
510 holding company, which converted from a mutual savings
511 association to a mutual holding company pursuant to 12 U.S.C. s.
512 1467a.(o), shall be valued as of January 1 each year on the same
513 basis as ownership in the mutual savings association was valued
514 for intangible tax purposes prior to the conversion. Stocks or
515 shares of such a converted association which are held by
516 individuals or entities other than the parent mutual holding
517 company shall be valued pursuant to subsection (1) or subsection
518 (4).
519 199.10555 Contaminated site rehabilitation tax credit.—
520 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
521 (a) A credit equal to 35 percent of the costs of voluntary
522 cleanup activity that is integral to site rehabilitation at the
523 following sites is available against any tax due for a taxable
524 year under s. 199.0325, less any credit allowed by former s.
525 220.68 for that year:
526 1. A drycleaning-solvent-contaminated site eligible for
527 state-funded site rehabilitation under s. 376.3078;
528 2. A drycleaning-solvent-contaminated site at which
529 voluntary cleanup is undertaken by the real property owner
530 pursuant to s. 376.3078, if the real property owner is not also,
531 and has never been, the owner or operator of the drycleaning
532 facility where the contamination exists; or
533 3. A brownfield site in a designated brownfield area under
534 s. 376.80.
535 (b) A tax credit applicant, or multiple tax credit
536 applicants working jointly to clean up a single site, may not be
537 granted more than $250,000 per year in tax credits for each site
538 voluntarily rehabilitated. Multiple tax credit applicants shall
539 be granted tax credits in the same proportion as their
540 contribution to payment of cleanup costs. Subject to the same
541 conditions and limitations as provided in this section, a
542 municipality, county, or other tax credit applicant which
543 voluntarily rehabilitates a site may receive not more than
544 $250,000 per year in tax credits which it can subsequently
545 transfer subject to the provisions in paragraph (g).
546 (c) If the credit granted under this section is not fully
547 used in any one year because of insufficient tax liability on
548 the part of the tax credit applicant, the unused amount may be
549 carried forward for a period not to exceed 5 years. Five years
550 after the date a credit is granted under this section, such
551 credit expires and may not be used. However, if during the 5
552 year period the credit is transferred, in whole or in part,
553 pursuant to paragraph (g), each transferee has 5 years after the
554 date of transfer to use the transferred credit.
555 (d) A taxpayer that receives a credit under s. 220.1845 is
556 ineligible to receive credit under this section in a given tax
557 year.
558 (e) A tax credit applicant that receives state-funded site
559 rehabilitation pursuant to s. 376.3078 for rehabilitation of a
560 drycleaning-solvent-contaminated site is ineligible to receive
561 credit under this section for costs incurred by the tax credit
562 applicant in conjunction with the rehabilitation of that site
563 during the same time period that state-administered site
564 rehabilitation was underway.
565 (f) The total amount of the tax credits which may be
566 granted under this section and s. 220.1845 is $2 million
567 annually.
568 (g)1. Tax credits that may be available under this section
569 to an entity eligible under s. 376.30781 may be transferred
570 after a merger or acquisition to the surviving or acquiring
571 entity and used in the same manner with the same limitations.
572 2. The entity, or its surviving or acquiring entity as
573 described in subparagraph 1., may transfer any unused credit in
574 whole or in units of no less than 25 percent of the remaining
575 credit. The entity acquiring such credit may use it in the same
576 manner and with the same limitation as described in this
577 section. Such transferred credits may not be transferred again,
578 although such credits may succeed to a surviving or acquiring
579 entity subject to the same conditions and limitations as
580 described in this section.
581 3. If the credit provided for under this section is reduced
582 as a result of a determination by the Department of
583 Environmental Protection or an examination or audit by the
584 Department of Revenue, such tax deficiency shall be recovered
585 from the first entity, or the surviving or acquiring entity, to
586 have claimed such credit up to the amount of credit taken. Any
587 subsequent deficiencies shall be assessed against any entity
588 acquiring and claiming such credit or, in the case of multiple
589 succeeding entities, in the order of credit succession.
590 (h) In order to encourage completion of site rehabilitation
591 at contaminated sites being voluntarily cleaned up and eligible
592 for a tax credit under this section, the tax credit applicant
593 may claim an additional 10 percent of the total cleanup costs,
594 not to exceed $50,000, in the final year of cleanup as evidenced
595 by the Department of Environmental Protection issuing a “No
596 Further Action” order for that site.
597 (2) FILING REQUIREMENTS.—Any taxpayer that wishes to obtain
598 credit under this section must submit with the taxpayer’s return
599 a tax credit certificate approving partial tax credits issued by
600 the Department of Environmental Protection under s. 376.30781.
601 (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
602 FORFEITURE.—
603 (a) The Department of Revenue may adopt rules to prescribe
604 any necessary forms required to claim a tax credit under this
605 section and to provide the administrative guidelines and
606 procedures required to administer this section.
607 (b) In addition to its existing audit and investigation
608 authority relating to chapters 199 and 220, the Department of
609 Revenue may perform any additional financial and technical
610 audits and investigations, including examining the accounts,
611 books, or records of the tax credit applicant, which are
612 necessary to verify the site rehabilitation costs included in a
613 tax credit return and to ensure compliance with this section.
614 The Department of Environmental Protection shall provide
615 technical assistance, when requested by the Department of
616 Revenue, on any technical audits performed under this section.
617 (c) It is grounds for forfeiture of previously claimed and
618 received tax credits if the Department of Revenue determines, as
619 a result of either an audit or information received from the
620 Department of Environmental Protection, that a taxpayer received
621 tax credits under this section to which the taxpayer was not
622 entitled. In the case of fraud, the taxpayer shall be prohibited
623 from claiming any future tax credits under this section or s.
624 220.1845.
625 1. The taxpayer is responsible for returning forfeited tax
626 credits to the Department of Revenue, and such funds shall be
627 paid into the General Revenue Fund of the state.
628 2. The taxpayer shall file with the Department of Revenue
629 an amended tax return or such other report as the Department of
630 Revenue prescribes by rule and shall pay any required tax within
631 60 days after the taxpayer receives notification from the
632 Department of Environmental Protection pursuant to s. 376.30781
633 that previously approved tax credits have been revoked or
634 modified, if uncontested, or within 60 days after a final order
635 is issued following proceedings involving a contested revocation
636 or modification order.
637 3. A notice of deficiency may be issued by the Department
638 of Revenue at any time within 5 years after the date the
639 taxpayer receives notification from the Department of
640 Environmental Protection pursuant to s. 376.30781 that
641 previously approved tax credits have been revoked or modified.
642 If a taxpayer fails to notify the Department of Revenue of any
643 change in its tax credit claimed, a notice of deficiency may be
644 issued at any time. In either case, the amount of any proposed
645 assessment set forth in such notice of deficiency shall be
646 limited to the amount of any deficiency resulting under this
647 section from the recomputation of the taxpayer’s tax for the
648 taxable year.
649 4. Any taxpayer that fails to report and timely pay any tax
650 due as a result of the forfeiture of its tax credit is in
651 violation of this section and is subject to applicable penalty
652 and interest.
653 199.1065 Credit for taxes imposed by other states.—
654 (1) For intangible personal property that has been deemed
655 to have a taxable situs in this state solely pursuant to s.
656 199.1755(2) or any similar predecessor statute, a credit against
657 the tax imposed by s. 199.0325 is allowed to a taxpayer in an
658 amount equal to a like tax lawfully imposed and paid by that
659 taxpayer on the same property in another state, territory of the
660 United States, or the District of Columbia. For purposes of this
661 subsection, the term “like tax” means an ad valorem tax on
662 intangible personal property that is also subject to tax under
663 s. 199.0325. The credit may not exceed the tax imposed on the
664 property under s. 199.0325. Proof of entitlement to such a
665 credit must be made pursuant to rules and forms adopted by the
666 department.
667 (2) For intangible personal property that has a taxable
668 situs in this state under s. 199.1755(1) or any similar
669 predecessor statute, a credit against the tax imposed by s.
670 199.0325 is allowed to a taxpayer in an amount equal to a like
671 tax lawfully imposed and paid by that taxpayer on the same
672 property in another state, territory of the United States, or
673 the District of Columbia when the other taxing authority is also
674 claiming situs under provisions similar or identical to those in
675 s. 199.1755(1) or any similar predecessor statute. For purposes
676 of this subsection, the term “like tax” means an ad valorem tax
677 on intangible personal property which is also subject to tax
678 under s. 199.0325. The credit may not exceed the tax imposed on
679 the property under s. 199.0325. Proof of entitlement to such a
680 credit must be made pursuant to rules and forms adopted by the
681 department.
682 (3) The credits provided by this section apply
683 retroactively. However, notwithstanding the retroactivity of
684 these credit provisions, this section does not reopen a closed
685 period of nonclaim under s. 215.26 or any other statute or
686 extend the period of nonclaim under s. 215.26 or any other
687 statute.
688 199.1755 Taxable situs.—For purposes of the annual tax
689 imposed under this chapter:
690 (1) Intangible personal property has a taxable situs in
691 this state when it is owned, managed, or controlled by any
692 person domiciled in this state on January 1 of the tax year.
693 Such intangibles shall be subject to annual taxation under this
694 chapter, unless the person who owns, manages, or controls them
695 is specifically exempt or unless the property is specifically
696 exempt. This provision applies regardless of where the evidence
697 of the intangible property is kept; where the intangible is
698 created, approved, or paid; or where business may be conducted
699 from which the intangible arises. The fact that a corporation in
700 this state owns the stock of an out-of-state corporation and
701 manages and controls such corporation from a location in this
702 state shall not operate to give a taxable situs in this state to
703 the intangibles owned by the out-of-state corporation, which
704 intangibles arise out of business transacted outside this state.
705 (a) For the purposes of this chapter, the term “any person
706 domiciled in this state” means:
707 1. Any natural person who is a legal resident of this
708 state;
709 2. Any business, business trust as described in chapter
710 609, company, corporation, partnership, or other artificial
711 entity organized or created under the law of this state, except
712 a trust; or
713 3. Any person, including a business trust, that has
714 established a commercial domicile in this state.
715 (b) A business or other artificial entity acquires its
716 commercial domicile in this state when it maintains its chief or
717 principal office in this state where executive or management
718 functions are performed or where the course of business
719 operations is determined.
720 (c) Notwithstanding the provisions of this subsection,
721 intangibles that are credit card receivables or charge card
722 receivables or related lines of credit or loans that would
723 otherwise be deemed to have taxable situs in this state solely
724 because they are owned, managed, or controlled by a bank or
725 savings association as defined in s. 220.62, or an affiliate or
726 subsidiary thereof, which is domiciled in this state shall be
727 treated as having a taxable situs in this state only when the
728 debt represented by the intangible is owed by a customer who is
729 domiciled in this state. As used in this paragraph, the terms
730 “credit card receivables” and “charge card receivables” do not
731 include trade or service receivables as defined in s. 864 of the
732 Internal Revenue Code of 1986, as amended.
733 (2) Intangible personal property has a taxable situs in
734 this state when it is deemed to have a business situs in this
735 state and it is owned, managed, or controlled by a person
736 transacting business in this state, even though the owner may
737 claim a domicile elsewhere. This provision applies regardless of
738 where the evidence of the intangible is kept or where the
739 intangible is created, approved, or paid.
740 (a) Intangibles shall be deemed to have a business situs in
741 this state when the intangibles receive the benefit and
742 protection of the laws and courts of this state and are derived
743 from, arise out of, or are issued in connection with the
744 business transacted in this state with a customer in this state.
745 For purposes of this paragraph:
746 1. Business is transacted in this state when any
747 occupation, profession, or commercial activity, including
748 financing, leasing, selling, or servicing activities, is
749 regularly conducted with customers in this state from an office,
750 plant, home, or any other business location in this state.
751 2. Business is transacted in this state when any
752 occupation, profession, or commercial activity, including, but
753 not limited to, financing, leasing, selling, or servicing
754 activities, is regularly conducted with customers in this state
755 by or through agents, employees, or representatives of any kind
756 in this state, whether or not such persons are vested with
757 discretionary authority.
758 (b) Notwithstanding the provisions of this subsection:
759 1.a. Intangible personal property that is credit card or
760 charge card receivables or related lines of credit or loans
761 shall be deemed to have business situs in this state only when
762 the debt represented by such intangible property is owed by a
763 customer who is domiciled in this state.
764 b. The performance of ministerial functions relating to, or
765 the processing of, credit card or charge card receivables in
766 this state for the owner of such receivables is not sufficient
767 to support a finding that the owner is transacting business in
768 this state.
769 c. The term “credit card or charge card receivables” does
770 not include trade or service receivables as defined in s. 864 of
771 the Internal Revenue Code of 1986, as amended.
772 2. Intangible personal property owned by a real estate
773 mortgage investment conduit, a real estate investment trust, or
774 a regulated investment company, as those terms are defined in
775 the United States Internal Revenue Code of 1986, as amended,
776 shall not be deemed to have a taxable situs in this state unless
777 such entity has its legal or commercial domicile in this state.
778 3. The ownership of any interest in a participation or
779 syndication loan or pool of loans, notes, or receivables is not
780 sufficient to support a finding that the owner of such interest
781 is transacting business in this state. For purposes of this
782 subparagraph, a participation or syndication loan is a loan in
783 which more than one lender is a creditor to a common borrower,
784 and a participation or syndication interest in a pool of loans,
785 notes, or receivables is an interest acquired from the
786 originator or initial creditor with respect to the loans, notes,
787 or receivables constituting the pool.
788 (c) It is the intent of this subsection that a nonresident
789 may not transact business in this state without paying the same
790 tax which the state imposes on residents transacting the same
791 business.
792 199.1855 Property exempted from annual and nonrecurring
793 taxes.—
794 (1) The following intangible personal property is exempt
795 from the annual and nonrecurring taxes imposed by this chapter:
796 (a) Money.
797 (b) Franchises.
798 (c) Any interest as a partner in a partnership, general or
799 limited, other than any interest as a limited partner in a
800 limited partnership registered with the Securities and Exchange
801 Commission pursuant to the Securities Act of 1933, as amended.
802 (d) Notes, bonds, and other obligations issued by the State
803 of Florida or its municipalities, counties, and other taxing
804 districts, or by the United States Government and its agencies.
805 (e) Intangible personal property held in trust pursuant to
806 any stock bonus, pension, or profit-sharing plan or any
807 individual retirement account which is qualified under s. 530,
808 s. 401, s. 408, or s. 408A of the United States Internal Revenue
809 Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended.
810 (f) Intangible personal property held under a retirement
811 plan of a Florida-based corporation exempt from federal income
812 tax under s. 501(c)(6) of the United States Internal Revenue
813 Code, 26 U.S.C., if the primary purpose of the corporation is to
814 support the promotion of professional sports and the retirement
815 plan is either a qualified plan under s. 457 of the United
816 States Internal Revenue Code or the contributions to the plan,
817 pursuant to a ruling by the United States Internal Revenue
818 Service, are not taxable to plan participants until actual
819 receipt or withdrawal by the participant.
820 (g) Notes and other obligations, except bonds, to the
821 extent that such notes and obligations are secured by mortgage,
822 deed of trust, or other lien upon real property situated outside
823 the state.
824 (h) The assets of a corporation registered under the
825 Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as
826 amended.
827 (i) All intangible personal property issued in or arising
828 out of any international banking transaction and owned by a
829 banking organization.
830 (j) Units of a unit investment trust and shares or units
831 of, or other undivided interest in, a business trust organized
832 under an agreement, indenture, or declaration of trust and
833 registered under the Investment Company Act of 1940, as amended,
834 shall be exempt if at least 90 percent of the net asset value of
835 the portfolio of assets corresponding to such shares, units, or
836 undivided interests is invested in assets that are exempt from
837 the tax imposed by s. 199.0325.
838 (k) Interests in real estate securitizations, including,
839 but not limited to, real estate mortgage investment conduits
840 (REMIC) and financial asset securitization trusts (FASITS),
841 which are directly or indirectly secured by or payable from
842 notes and obligations that are in turn secured solely by a
843 mortgage, deed of trust, or other lien upon real property
844 situated in or outside the state, including, but not limited to,
845 mortgage pools, participations, and derivatives.
846 (l) All accounts receivable arising or acquired in the
847 ordinary course of a trade or business which are owned,
848 controlled, or managed by a taxpayer. This exemption does not
849 apply to accounts receivable that arise outside the taxpayer’s
850 ordinary course of trade or business. For the purposes of this
851 chapter, the term “accounts receivable” means a business debt
852 that is owed by another to the taxpayer or the taxpayer’s
853 assignee in the ordinary course of trade or business and is not
854 supported by negotiable instruments. Accounts receivable
855 include, but are not limited to, credit card receivables, charge
856 card receivables, credit receivables, margin receivables,
857 inventory or other floor plan financing, lease payments past
858 due, conditional sales contracts, retail installment sales
859 agreements, financing lease contracts, and a claim against a
860 debtor usually arising from sales or services rendered and which
861 is not necessarily due or past due. The examples specified in
862 this paragraph shall be deemed not to be supported by negotiable
863 instruments. The term “negotiable instrument” means a written
864 document that is legally capable of being transferred by
865 endorsement or delivery. The term “endorsement” means the act of
866 a payee or holder in writing his or her name on the back of an
867 instrument without further qualifying words other than “pay to
868 the order of” or “pay to” whereby the property is assigned and
869 transferred to another.
870 (m) Stock options granted to employees by their employer
871 pursuant to an incentive plan, if the employees cannot transfer,
872 sell, or mortgage the options. Stock purchased by an employee
873 from an employer pursuant to an incentive plan shall be treated
874 as a nontaxable stock option if part of the purchase price of
875 the stock is nonrecourse debt secured by the stock and the stock
876 cannot be sold, transferred, or assigned by the employee until
877 the nonrecourse debt is discharged. Such stock becomes taxable
878 stock when it can be sold, transferred, or assigned by the
879 employee.
880 (n)1. A leasehold estate in governmental property in which
881 the lessee is required to furnish space on the leasehold estate
882 for public use by governmental agencies at no charge to the
883 governmental agencies.
884 2. The provisions of this exemption apply retroactively.
885 However, notwithstanding the retroactivity of the exemption, it
886 does not reopen a closed period of nonclaim under s. 215.26 or
887 any other law or extend the period of nonclaim under s. 215.26
888 or any other statute.
889 (2)(a) Each natural person is entitled each year to an
890 exemption of the first $1 million of the value of property
891 otherwise subject to the annual tax. A husband and wife filing
892 jointly shall have an exemption of $2 million. Every taxpayer
893 that is not a natural person is entitled each year to an
894 exemption of the first $250,000 of the value of property
895 otherwise subject to the tax. Agents and fiduciaries, other than
896 guardians and custodians under a gifts-to-minors act, filing as
897 such may not claim this exemption on behalf of their principals
898 or beneficiaries; however, if the principal or beneficiary
899 returns the property held by the agent or fiduciary and is a
900 natural person, the principal or beneficiary may claim the
901 exemption. A taxpayer is not entitled to more than one exemption
902 under this subsection. This exemption shall not apply to
903 intangible personal property described in s. 199.0235(6)(d).
904 (b) For purposes of this chapter, a resident shall be
905 deemed to have a beneficial interest in a trust if the resident
906 is the grantor of an irrevocable trust formed under any
907 arrangement, verbal or written, that provides for more than 25
908 per cent of the assets of the trust to be transferred within 10
909 years after the agreement is executed back to the grantor or to
910 the beneficiary other than as a result of the death of the
911 grantor. Assets in any trust designated as a Florida Intangible
912 Tax Exempt Trust or a similar arrangement are considered
913 beneficial interests.
914 (3) Each natural person who is a widow or widower, or who
915 is blind or totally and permanently disabled, is entitled each
916 year to an additional exemption of $500 of property otherwise
917 subject to the annual or nonrecurring tax. This exemption is
918 afforded by s. 3, Art. VII of the State Constitution and is
919 available only to the extent not used against real property or
920 tangible personal property taxes.
921 (4) Charitable trusts, 95 percent of the income of which is
922 paid to organizations exempt from federal income tax pursuant to
923 s. 501(c)3 of the Internal Revenue Code, are exempt from the tax
924 imposed in s. 199.0325.
925 (5) Any organization defined in s. 220.62(1), (2), (3), or
926 (4) is exempt from the tax imposed by s. 199.0325.
927 (6) Each liquor distributor that is domiciled in this
928 state, that is authorized to do business under the Beverage Law,
929 and that has paid the license taxes required by s. 565.03(2) is
930 exempt from paying tax on accounts receivable owned by the
931 taxpayer which are derived from, arise out of, or are issued in
932 connection with a sale of alcoholic beverages transacted in
933 another state with a customer in another state.
934 (7) A national bank that has its principal place of
935 business in another state, processes credit card credit
936 applications in this state or performs customer service or
937 collection operations in this state, and is not a bank under 12
938 U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit
939 card receivables owed to the bank by a credit card holder
940 domiciled outside this state.
941 (8) Each insurer, as defined in s. 624.03, whether the
942 insurer is authorized or unauthorized as defined in s. 624.09,
943 is exempt from the tax imposed by s. 199.0325.
944 Section 2. Effective January 1, 2011, paragraph (c) of
945 subsection (1) of section 28.35, Florida Statutes, is amended to
946 read:
947 28.35 Florida Clerks of Court Operations Corporation.—
948 (1)
949 (c) For purposes of s. 199.183(1), the corporation shall be
950 considered a political subdivision of the state and shall be
951 exempt from the corporate income tax. The corporation is not
952 subject to the procurement provisions of chapter 287, and
953 policies and decisions of the corporation relating to incurring
954 debt, levying assessments, and the sale, issuance, continuation,
955 terms, and claims under corporation policies, and all services
956 relating thereto, are not subject to the provisions of chapter
957 120.
958 Section 3. Effective January 1, 2011, paragraph (a) of
959 subsection (4) of section 192.0105, Florida Statutes, is amended
960 to read:
961 192.0105 Taxpayer rights.—There is created a Florida
962 Taxpayer’s Bill of Rights for property taxes and assessments to
963 guarantee that the rights, privacy, and property of the
964 taxpayers of this state are adequately safeguarded and protected
965 during tax levy, assessment, collection, and enforcement
966 processes administered under the revenue laws of this state. The
967 Taxpayer’s Bill of Rights compiles, in one document, brief but
968 comprehensive statements that summarize the rights and
969 obligations of the property appraisers, tax collectors, clerks
970 of the court, local governing boards, the Department of Revenue,
971 and taxpayers. Additional rights afforded to payors of taxes and
972 assessments imposed under the revenue laws of this state are
973 provided in s. 213.015. The rights afforded taxpayers to assure
974 that their privacy and property are safeguarded and protected
975 during tax levy, assessment, and collection are available only
976 insofar as they are implemented in other parts of the Florida
977 Statutes or rules of the Department of Revenue. The rights so
978 guaranteed to state taxpayers in the Florida Statutes and the
979 departmental rules include:
980 (4) THE RIGHT TO CONFIDENTIALITY.—
981 (a) The right to have information kept confidential,
982 including federal tax information, ad valorem tax returns,
983 social security numbers, all financial records produced by the
984 taxpayer, Form DR-219 returns for documentary stamp tax
985 information, and sworn statements of gross income, copies of
986 federal income tax returns for the prior year, wage and earnings
987 statements (W-2 forms), and other documents (see ss. 192.105,
988 193.074, 193.114(6)(5), 195.027(3) and (6), and 196.101(4)(c)).
989 Section 4. Effective January 1, 2011, subsections (5) and
990 (6) of section 192.032, Florida Statutes, are renumbered as
991 subsections (6) and (7), respectively, and a new subsection (5)
992 is added to that section, to read:
993 192.032 Situs of property for assessment purposes.—All
994 property shall be assessed according to its situs as follows:
995 (5) Intangible personal property, according to the rules
996 laid down in chapter 199.
997 Section 5. Effective January 1, 2011, subsection (3) is
998 added to section 192.042, Florida Statutes, to read:
999 192.042 Date of assessment.—All property shall be assessed
1000 according to its just value as follows:
1001 (3) Intangible personal property, according to the rules
1002 laid down in chapter 199.
1003 Section 6. Effective January 1, 2011, subsection (5) of
1004 section 192.091, Florida Statutes, is amended to read:
1005 192.091 Commissions of property appraisers and tax
1006 collectors.—
1007 (5) The provisions of this section shall not apply to
1008 commissions on intangible property taxes or drainage district or
1009 drainage subdistrict taxes.
1010 Section 7. Effective January 1, 2011, subsections (4), (5),
1011 and (6) of section 193.114, Florida Statutes, are renumbered as
1012 subsections (5), (6), and (7), respectively, and a new
1013 subsection (4) is added to that section to read:
1014 193.114 Preparation of assessment rolls.—
1015 (4) The department shall adopt regulations and forms for
1016 the preparation of the intangible personal property tax roll to
1017 comply with chapter 199.
1018 Section 8. Effective January 1, 2011, subsection (11) is
1019 added to section 196.015, Florida Statutes, to read:
1020 196.015 Permanent residency; factual determination by
1021 property appraiser.—Intention to establish a permanent residence
1022 in this state is a factual determination to be made, in the
1023 first instance, by the property appraiser. Although any one
1024 factor is not conclusive of the establishment or
1025 nonestablishment of permanent residence, the following are
1026 relevant factors that may be considered by the property
1027 appraiser in making his or her determination as to the intent of
1028 a person claiming a homestead exemption to establish a permanent
1029 residence in this state:
1030 (11) The previous filing of Florida intangible tax returns
1031 by the applicant.
1032 Section 9. Effective January 1, 2011, paragraph (b) of
1033 subsection (2) of section 196.199, Florida Statutes, is amended
1034 to read:
1035 196.199 Government property exemption.—
1036 (2) Property owned by the following governmental units but
1037 used by nongovernmental lessees shall only be exempt from
1038 taxation under the following conditions:
1039 (b) Except as provided in paragraph (c), the exemption
1040 provided by this subsection shall not apply to those portions of
1041 a leasehold or other interest defined by s. 199.0235(6)(d)
1042 199.023(1)(d), Florida Statutes 2005, subject to the provisions
1043 of subsection (7). Such leasehold or other interest shall be
1044 taxed only as intangible personal property pursuant to chapter
1045 199, Florida Statutes 2005, if rental payments are due in
1046 consideration of such leasehold or other interest. All
1047 applicable collection, administration, and enforcement
1048 provisions of chapter 199, Florida Statutes 2005, shall apply to
1049 taxation of such leaseholds. If no rental payments are due
1050 pursuant to the agreement creating such leasehold or other
1051 interest, the leasehold or other interest shall be taxed as real
1052 property. Nothing in this paragraph shall be deemed to exempt
1053 personal property, buildings, or other real property
1054 improvements owned by the lessee from ad valorem taxation.
1055 Section 10. Effective January 1, 2011, subsection (2) of
1056 section 199.133, Florida Statutes, is amended to read:
1057 199.133 Levy of nonrecurring tax; relationship to annual
1058 tax.—
1059 (2) The nonrecurring tax shall apply to a note, bond, or
1060 other obligation for payment of money only to the extent it is
1061 secured by mortgage, deed of trust, or other lien upon real
1062 property situated in this state. Where a note, bond, or other
1063 obligation is secured by personal property or by real property
1064 situated outside this state, as well as by mortgage, deed of
1065 trust, or other lien upon real property situated in this state,
1066 then the nonrecurring tax shall apply to that portion of the
1067 note, bond, or other obligation which bears the same ratio to
1068 the entire principal balance of the note, bond, or other
1069 obligation as the value of the real property situated in this
1070 state bears to the value of all of the security; however, if the
1071 security is solely made up of personal property and real
1072 property situated in this state, the taxpayer may elect to
1073 apportion the taxes based upon the value of the collateral, if
1074 any, to which the taxpayer by law or contract must look first
1075 for collection. In no event shall the portion of the note, bond,
1076 or other obligation which is subject to the nonrecurring tax
1077 exceed in value the value of the real property situated in this
1078 state which is the security. The portion of a note, bond, or
1079 other obligation that is not subject to the nonrecurring tax
1080 shall be subject to the annual tax unless otherwise exempt.
1081 Section 11. Effective January 1, 2011, paragraph (a) of
1082 subsection (1) of section 199.183, Florida Statutes, is amended,
1083 and subsections (3) and (4) are added to that section, to read:
1084 199.183 Taxpayers exempt from annual and nonrecurring
1085 taxes.—
1086 (1) Intangible personal property owned by this state or any
1087 of its political subdivisions or municipalities shall be exempt
1088 from taxation under this chapter. This exemption does not apply
1089 to:
1090 (a) Any leasehold or other interest that is described in s.
1091 199.0235(6)(d) 199.023(1)(d), Florida Statutes 2005; or
1092 (b) Property related to the provision of two-way
1093 telecommunications services to the public for hire by the use of
1094 a telecommunications facility, as defined in s. 364.02(15), and
1095 for which a certificate is required under chapter 364, when the
1096 service is provided by any county, municipality, or other
1097 political subdivision of the state. Any immunity of any
1098 political subdivision of the state or other entity of local
1099 government from taxation of the property used to provide
1100 telecommunication services that is taxed as a result of this
1101 paragraph is hereby waived. However, intangible personal
1102 property related to the provision of telecommunications services
1103 provided by the operator of a public-use airport, as defined in
1104 s. 332.004, for the operator’s provision of telecommunications
1105 services for the airport or its tenants, concessionaires, or
1106 licensees, and intangible personal property related to the
1107 provision of telecommunications services provided by a public
1108 hospital, are exempt from taxation under this chapter.
1109 (3) Every national bank having its principal place of
1110 business in another state, but operating a credit card credit
1111 application processing, customer service, or collection
1112 operation in this state, that is not considered a bank under the
1113 provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying
1114 the tax imposed by this chapter on credit card receivables owed
1115 to the bank by credit card holders domiciled outside this state.
1116 (4) Intangible personal property that is owned, managed, or
1117 controlled by a trustee of a trust is exempt from annual tax
1118 under this chapter. This exemption does not exempt from annual
1119 tax a resident of this state who has a taxable beneficial
1120 interest, as defined in s. 199.0235(4), in a trust.
1121 Section 12. Effective January 1, 2011, section 199.218,
1122 Florida Statutes, is amended to read:
1123 199.218 Books and records.—
1124 (1) Each taxpayer shall retain all books and other records
1125 necessary to identify the taxpayer’s intangible personal
1126 property and to determine any tax due under this chapter, as
1127 well as all books and other records otherwise required by rule
1128 of the department with respect to any such tax, until the
1129 department’s power to make an assessment with respect to such
1130 tax has terminated under s. 95.091(3).
1131 (2) Each broker subject to the provisions of s. 199.0625
1132 shall preserve all books and other records relating to the
1133 information reported under s. 199.0625 or otherwise required by
1134 rule of the department for a period of 3 years from the due date
1135 of the report.
1136 Section 13. Effective January 1, 2011, paragraph (a) of
1137 subsection (1) and subsection (3) of section 199.232, Florida
1138 Statutes, are amended to read:
1139 199.232 Powers of department.—
1140 (1)(a) The department may audit the books and records of
1141 any person to determine whether an annual tax or a nonrecurring
1142 tax has been properly paid.
1143 (3) With or without an audit, the department may assess any
1144 tax deficiency resulting from nonpayment or underpayment of the
1145 tax, as well as any applicable interest and penalties. The
1146 department shall assess on the basis of the best information
1147 available to it, including estimates based on the best
1148 information available to it if the taxpayer fails to permit
1149 inspection of the taxpayer’s records, fails to file an annual
1150 return, files a grossly incorrect return, or files a false and
1151 fraudulent return.
1152 Section 14. Effective January 1, 2011, section 199.282,
1153 Florida Statutes, is amended to read:
1154 199.282 Penalties for violation of this chapter.—
1155 (1) Any person willfully violating or failing to comply
1156 with any of the provisions of this chapter shall be guilty of a
1157 felony of the third degree, punishable as provided in s.
1158 775.082, s. 775.083, or s. 775.084.
1159 (2) If any annual or nonrecurring tax is not paid by the
1160 statutory due date, then despite any extension granted under s.
1161 199.232(6), interest shall run on the unpaid balance from such
1162 due date until paid at the rate of 12 percent per year.
1163 (3)(a) If any annual or nonrecurring tax is not paid by the
1164 due date, a delinquency penalty shall be charged. The
1165 delinquency penalty shall be 10 percent of the delinquent tax
1166 for each calendar month or portion thereof from the due date
1167 until paid, up to a limit of 50 percent of the total tax not
1168 timely paid.
1169 (b) If any annual tax return required by this chapter is
1170 not filed by the due date, a penalty of 10 percent of the tax
1171 due with the return shall be charged for each calendar month or
1172 portion thereof during which the return remains unfiled, up to a
1173 limit of 50 percent of the total tax due.
1174
1175 For any penalty assessed under this subsection, the combined
1176 total for all penalties assessed under paragraphs (a) and (b)
1177 shall not exceed 10 percent per calendar month, up to a limit of
1178 50 percent of the total tax due.
1179 (4) If an annual tax return is filed and property is either
1180 omitted from it or undervalued, then a specific penalty shall be
1181 charged. The specific penalty shall be 10 percent of the tax
1182 attributable to each omitted item or to each undervaluation. No
1183 delinquency or late filing penalty shall be charged with respect
1184 to any undervaluation.
1185 (5)(4) No mortgage, deed of trust, or other lien upon real
1186 property situated in this state shall be enforceable in any
1187 Florida court, nor shall any written evidence of such mortgage,
1188 deed of trust, or other lien be recorded in any public record of
1189 the state, until the nonrecurring tax imposed by this chapter,
1190 including any taxes due on future advances, has been paid and
1191 the clerk of circuit court collecting the tax has noted its
1192 payment on the instrument or given other receipt for it.
1193 However, failure to pay the correct amount of tax or failure of
1194 the clerk to note payment of the tax on the instrument shall not
1195 affect the constructive notice given by recording of the
1196 instrument.
1197 (6) Late reporting penalties shall be imposed as follows:
1198 (a) A penalty of $100 upon any corporation that does not
1199 timely file a written notice required under s. 199.0575(2)(c).
1200 (b) An initial penalty of $10 per customer position
1201 statement, plus an additional penalty of the greater of 1
1202 percent of the initial penalty or $50 for each month or portion
1203 of a month, from the date due until filing is made, upon any
1204 security dealer or investment adviser who does not timely file
1205 or fails to file the statements required by s. 199.0625(1). The
1206 submission of a position statement that does not comply with the
1207 department’s specifications and instructions or the submission
1208 of an inaccurate position statement is not a timely filing. The
1209 department shall notify any security dealer or investment
1210 adviser who fails to timely file the required statements. The
1211 minimum penalty imposed upon a security dealer or investment
1212 adviser under this paragraph is $100.
1213 (7)(5) Interest and penalties attributable to any tax shall
1214 be deemed assessed when the tax is assessed. Interest and
1215 penalties shall be assessed and collected by the department as
1216 provided in this chapter. The department may settle or
1217 compromise tax, interest, or penalties under the provisions of
1218 s. 213.21.
1219 (8)(6) Any person who fails or refuses to file an annual
1220 return, or who fails or refuses to make records available for
1221 inspection, when requested to do so by the department is guilty
1222 of a misdemeanor of the first degree, punishable as provided in
1223 s. 775.082 or s. 775.083.
1224 (9)(7) Any officer or director of a corporation who has
1225 administrative control over the filing of a return or payment of
1226 any tax due under this chapter and who willfully directs any
1227 employee of the corporation to fail to file the return or pay
1228 the tax due or to evade, defeat, or improperly account for the
1229 tax due, in addition to any other penalties provided by law,
1230 shall be liable for a penalty equal to the amount of tax not
1231 paid as required by this chapter. The filing of a protest based
1232 upon doubt as to liability for the tax shall not be deemed an
1233 attempt to evade or defeat the tax under this subsection. The
1234 penalty imposed hereunder shall be abated to the extent the tax
1235 is paid and may be compromised by the executive director of the
1236 department as provided in s. 213.21. An assessment of penalty
1237 made pursuant to this section shall be deemed prima facie
1238 correct in any judicial or quasi-judicial proceeding brought to
1239 collect this penalty.
1240 Section 15. Effective January 1, 2011, section 199.292,
1241 Florida Statutes, is amended to read:
1242 199.292 Disposition of intangible personal property taxes.
1243 All intangible personal property taxes collected pursuant to
1244 this chapter, except for revenues derived from the annual tax on
1245 a leasehold described in s. 199.0235(6)(d) 199.023(1)(d),
1246 Florida Statutes 2005, shall be deposited into the General
1247 Revenue Fund. Revenues derived from the annual tax on a
1248 leasehold described in s. 199.0235(6)(d) 199.023(1)(d), Florida
1249 Statutes 2005, shall be returned to the local school board for
1250 the county in which the property subject to the leasehold is
1251 situated.
1252 Section 16. Effective January 1, 2011, subsection (3) of
1253 section 199.303, Florida Statutes, is amended to read:
1254 199.303 Declaration of legislative intent.—
1255 (3) It is hereby declared to be the specific intent of the
1256 Legislature that all annual intangible personal property taxes
1257 imposed as provided by law for calendar years 2006 and prior
1258 shall remain in full force and effect during the period
1259 specified by s. 95.091 for the year in which the tax was due. It
1260 is further the intent of the Legislature that the department
1261 continue to assess and collect all taxes due to the state under
1262 such provisions for all periods available for assessment, as
1263 provided for the year in which tax was due by s. 95.091.
1264 Section 17. Effective January 1, 2011, subsection (19) of
1265 section 212.02, Florida Statutes, is amended to read:
1266 212.02 Definitions.—The following terms and phrases when
1267 used in this chapter have the meanings ascribed to them in this
1268 section, except where the context clearly indicates a different
1269 meaning:
1270 (19) “Tangible personal property” means and includes
1271 personal property which may be seen, weighed, measured, or
1272 touched or is in any manner perceptible to the senses, including
1273 electric power or energy, boats, motor vehicles and mobile homes
1274 as defined in s. 320.01(1) and (2), aircraft as defined in s.
1275 330.27, and all other types of vehicles. The term “tangible
1276 personal property” does not include stocks, bonds, notes,
1277 insurance, or other obligations or securities; intangibles as
1278 defined by the intangible tax law of the state; or pari-mutuel
1279 tickets sold or issued under the racing laws of the state.
1280 Section 18. Effective January 1, 2011, paragraph (p) of
1281 subsection (8) and paragraph (a) of subsection (15) of section
1282 213.053, Florida Statutes, are amended to read:
1283 213.053 Confidentiality and information sharing.—
1284 (8) Notwithstanding any other provision of this section,
1285 the department may provide:
1286 (p) Information relative to ss. 199.10555, 220.1845, and
1287 376.30781 to the Department of Environmental Protection in the
1288 conduct of its official business.
1289
1290 Disclosure of information under this subsection shall be
1291 pursuant to a written agreement between the executive director
1292 and the agency. Such agencies, governmental or nongovernmental,
1293 shall be bound by the same requirements of confidentiality as
1294 the Department of Revenue. Breach of confidentiality is a
1295 misdemeanor of the first degree, punishable as provided by s.
1296 775.082 or s. 775.083.
1297 (15)(a) Notwithstanding any other provision of this
1298 section, the department shall, subject to the safeguards
1299 specified in paragraph (c), disclose to the Division of
1300 Corporations of the Department of State the name, address,
1301 federal employer identification number, and duration of tax
1302 filings with this state of all corporate or partnership entities
1303 which are not on file or have a dissolved status with the
1304 Division of Corporations and which have filed tax returns
1305 pursuant to chapter 199 or chapter 220.
1306 Section 19. Effective January 1, 2011, section 213.054,
1307 Florida Statutes, is amended to read:
1308 213.054 Persons claiming tax exemptions or deductions;
1309 annual report.—The Department of Revenue shall be responsible
1310 for monitoring the utilization of tax exemptions and tax
1311 deductions authorized pursuant to chapter 81-179, Laws of
1312 Florida. On or before September 1 of each year, the department
1313 shall report to the Chief Financial Officer the names and
1314 addresses of all persons who have claimed an exemption pursuant
1315 to s. 199.1855(1)(i) or a deduction pursuant to s. 220.63(5).
1316 Section 20. Effective January 1, 2011, section 213.27,
1317 Florida Statutes, is amended to read:
1318 213.27 Contracts with debt collection agencies and certain
1319 vendors.—
1320 (1) The Department of Revenue may, for the purpose of
1321 collecting any delinquent taxes due from a taxpayer, including
1322 taxes for which a bill or notice has been generated, contract
1323 with any debt collection agency or attorney doing business
1324 within or without this state for the collection of such
1325 delinquent taxes, including penalties and interest thereon. The
1326 department may also share confidential information pursuant to
1327 the contract necessary for the collection of delinquent taxes
1328 and taxes for which a billing or notice has been generated.
1329 Contracts will be made pursuant to chapter 287. The taxpayer
1330 must be notified by mail by the department, its employees, or
1331 its authorized representative at least 30 days prior to
1332 commencing any litigation to recover any delinquent taxes. The
1333 taxpayer must be notified by mail by the department at least 30
1334 days prior to the initial assignment by the department of the
1335 taxpayer’s account for the collection of any taxes by the debt
1336 collection agency.
1337 (2) The department may enter into contracts with any
1338 individual or business for the purpose of identifying intangible
1339 personal property tax liability. Contracts may provide for the
1340 identification of assets subject to the tax on intangible
1341 personal property, the determination of value of such property,
1342 the requirement for filing a tax return and the collection of
1343 taxes due, including applicable penalties and interest thereon.
1344 The department may share confidential information pursuant to
1345 the contract necessary for the identification of taxable
1346 intangible personal property. Contracts shall be made pursuant
1347 to chapter 287. The taxpayer must be notified by mail by the
1348 department at least 30 days prior to the department assigning
1349 identification of intangible personal property to an individual
1350 or business.
1351 (3)(2) Any contract may provide, in the discretion of the
1352 executive director of the Department of Revenue, the manner in
1353 which the compensation for such services will be paid. Under
1354 standards established by the department, such compensation shall
1355 be added to the amount of the tax and collected as a part
1356 thereof by the agency or deducted from the amount of tax,
1357 penalty, and interest actually collected.
1358 (4)(3) All funds collected under the terms of the contract,
1359 less the fees provided in the contract, shall be remitted to the
1360 department within 30 days from the date of collection from a
1361 taxpayer. Forms to be used for such purpose shall be prescribed
1362 by the department.
1363 (5)(4) The department shall require a bond from the debt
1364 collection agency or the individual or business contracted with
1365 under subsection (2) not in excess of $100,000 guaranteeing
1366 compliance with the terms of the contract. However, a bond of
1367 $10,000 is required from a debt collection agency if the agency
1368 does not actually collect and remit delinquent funds to the
1369 department.
1370 (6)(5) The department may, for the purpose of ascertaining
1371 the amount of or collecting any taxes due from a person doing
1372 mail order business in this state, contract with any auditing
1373 agency doing business within or without this state for the
1374 purpose of conducting an audit of such mail order business;
1375 however, such audit agency may not conduct an audit on behalf of
1376 the department of any person domiciled in this state, person
1377 registered for sales and use tax purposes in this state, or
1378 corporation filing a Florida corporate tax return, if any such
1379 person or corporation objects to such audit in writing to the
1380 department and the auditing agency. The department shall notify
1381 the taxpayer by mail at least 30 days before the department
1382 assigns the collection of such taxes.
1383 (7)(6) Confidential information shared by the department
1384 with debt collection or auditing agencies or individuals or
1385 businesses with which the department has contracted under
1386 subsection (2) is exempt from the provisions of s. 119.07(1),
1387 and debt collection or auditing agencies and individuals or
1388 businesses with which the department has contracted under
1389 subsection (2) shall be bound by the same requirements of
1390 confidentiality as the Department of Revenue. Breach of
1391 confidentiality is a misdemeanor of the first degree, punishable
1392 as provided by ss. 775.082 and 775.083.
1393 (8)(7)(a) The executive director of the department may
1394 enter into contracts with private vendors to develop and
1395 implement systems to enhance tax collections where compensation
1396 to the vendors is funded through increased tax collections. The
1397 amount of compensation paid to a vendor shall be based on a
1398 percentage of increased tax collections attributable to the
1399 system after all administrative and judicial appeals are
1400 exhausted, and the total amount of compensation paid to a vendor
1401 shall not exceed the maximum amount stated in the contract.
1402 (b) A person acting on behalf of the department under a
1403 contract authorized by this subsection does not exercise any of
1404 the powers of the department, except that the person is an agent
1405 of the department for the purposes of developing and
1406 implementing a system to enhance tax collection.
1407 (c) Disclosure of information under this subsection shall
1408 be pursuant to a written agreement between the executive
1409 director and the private vendors. The vendors shall be bound by
1410 the same requirements of confidentiality as the department.
1411 Breach of confidentiality is a misdemeanor of the first degree,
1412 punishable as provided in s. 775.082 or s. 775.083.
1413 Section 21. Effective January 1, 2011, paragraph (b) of
1414 subsection (4) of section 650.05, Florida Statutes, is amended
1415 to read:
1416 650.05 Plans for coverage of employees of political
1417 subdivisions.—
1418 (4)
1419 (b) The grants-in-aid and other revenue referred to in
1420 paragraph (a) specifically include, but are not limited to,
1421 minimum foundation program grants to public school districts and
1422 community colleges; gasoline, motor fuel, intangible, cigarette,
1423 racing, and insurance premium taxes distributed to political
1424 subdivisions; and amounts specifically appropriated as grants
1425 in-aid for mental health, mental retardation, and mosquito
1426 control programs.
1427 Section 22. Effective January 1, 2011, subsection (5) of
1428 section 733.702, Florida Statutes, is renumbered as subsection
1429 (6), and a new subsection (5) is added to that section to read:
1430 733.702 Limitations on presentation of claims.—
1431 (5) The Department of Revenue may file a claim against the
1432 estate of a decedent for taxes due under chapter 199 after the
1433 expiration of the time for filing claims provided in subsection
1434 (1), if the department files its claim within 30 days after the
1435 service of the inventory. Upon filing of the estate tax return
1436 with the department as provided in s. 198.13, or to the extent
1437 the inventory or estate tax return is amended or supplemented,
1438 the department has the right to file a claim or to amend its
1439 previously filed claim within 30 days after service of the
1440 estate tax return, or an amended or supplemented inventory or
1441 filing of an amended or supplemental estate tax return, as to
1442 the additional information disclosed.
1443 Section 23. Effective upon this act becoming a law, the
1444 executive director of the Department of Revenue may adopt
1445 emergency rules under ss. 120.536(1) and 120.54, Florida
1446 Statutes, to implement chapter 199, Florida Statutes, and all
1447 conditions are deemed met for the adoption of such rules.
1448 Notwithstanding any other provision of law, such emergency rules
1449 shall remain effective for 6 months after the date of adoption
1450 and may be renewed during the pendency of procedures to adopt
1451 rules addressing the subject of the emergency rules.
1452 Section 24. Legislative findings and intent.—The
1453 Legislature finds that the separate accounting system used to
1454 measure the income of multistate and multinational corporations
1455 for tax purposes often places corporations in this state at a
1456 competitive disadvantage. Moreover, corporate business is
1457 increasingly conducted through groups of commonly owned
1458 corporations. Therefore, the Legislature intends to more
1459 accurately measure the business activities of corporations by
1460 adopting a combined system of income tax reporting.
1461 Section 25. Paragraph (z) of subsection (1) of section
1462 220.03, Florida Statutes, is amended, and paragraphs (gg) and
1463 (hh) are added to that subsection, to read:
1464 220.03 Definitions.—
1465 (1) SPECIFIC TERMS.—When used in this code, and when not
1466 otherwise distinctly expressed or manifestly incompatible with
1467 the intent thereof, the following terms shall have the following
1468 meanings:
1469 (z) “Taxpayer” means any corporation subject to the tax
1470 imposed by this code, and includes all corporations that are
1471 members of a water’s edge group for which a consolidated return
1472 is filed under s. 220.131. However, “taxpayer” does not include
1473 a corporation having no individuals (including individuals
1474 employed by an affiliate) receiving compensation in this state
1475 as defined in s. 220.15 when the only property owned or leased
1476 by said corporation (including an affiliate) in this state is
1477 located at the premises of a printer with which it has
1478 contracted for printing, if such property consists of the final
1479 printed product, property which becomes a part of the final
1480 printed product, or property from which the printed product is
1481 produced.
1482 (gg) “Tax haven” means a jurisdiction that, for a
1483 particular tax year:
1484 1. Is identified by the Organization for Economic Co
1485 operation and Development as a tax haven or as having a harmful
1486 preferential tax regime; or
1487 2.a. Is a jurisdiction that does not impose or imposes only
1488 a nominal, effective tax on relevant income;
1489 b. Has laws or practices that prevent the effective
1490 exchange of information for tax purposes with other governments
1491 regarding taxpayers who are subject to, or benefiting from, the
1492 tax regime;
1493 c. Lacks transparency;
1494 d. Facilitates the establishment of foreign-owned entities
1495 without the need for a local substantive presence or prohibits
1496 these entities from having any commercial impact on the local
1497 economy;
1498 e. Explicitly or implicitly excludes the jurisdiction’s
1499 resident taxpayers from taking advantage of the tax regime’s
1500 benefits or prohibits enterprises that benefit from the regime
1501 from operating in the jurisdiction’s domestic market; or
1502 f. Has created a tax regime that is favorable for tax
1503 avoidance, based upon an overall assessment of relevant factors,
1504 including whether the jurisdiction has a significant untaxed
1505 offshore financial or other services sector relative to its
1506 overall economy.
1507
1508 For purposes of this paragraph, a tax regime lacks transparency
1509 if the details of legislative, legal, or administrative
1510 requirements are not open to public scrutiny and apparent, or
1511 are not consistently applied among similarly situated taxpayers.
1512 As used in this paragraph, the term “tax regime” means a set or
1513 system of rules, laws, regulations, or practices by which taxes
1514 are imposed on any person, corporation, or entity, or on any
1515 income, property, incident, indicia, or activity pursuant to
1516 government authority.
1517 (hh) “Water’s edge group” means a group of corporations
1518 related through common ownership whose business activities are
1519 integrated with, dependent upon, or contribute to a flow of
1520 value among members of the group.
1521 Section 26. Subsection (1) of section 220.13, Florida
1522 Statutes, is amended to read:
1523 220.13 “Adjusted federal income” defined.—
1524 (1) The term “adjusted federal income” means an amount
1525 equal to the taxpayer’s taxable income as defined in subsection
1526 (2), or such taxable income of more than one taxpayer as
1527 provided in s. 220.1363 s. 220.131, for the taxable year,
1528 adjusted as follows:
1529 (a) Additions.—There shall be added to such taxable income:
1530 1. The amount of any tax upon or measured by income,
1531 excluding taxes based on gross receipts or revenues, paid or
1532 accrued as a liability to the District of Columbia or any state
1533 of the United States which is deductible from gross income in
1534 the computation of taxable income for the taxable year.
1535 2. The amount of interest which is excluded from taxable
1536 income under s. 103(a) of the Internal Revenue Code or any other
1537 federal law, less the associated expenses disallowed in the
1538 computation of taxable income under s. 265 of the Internal
1539 Revenue Code or any other law, excluding 60 percent of any
1540 amounts included in alternative minimum taxable income, as
1541 defined in s. 55(b)(2) of the Internal Revenue Code, if the
1542 taxpayer pays tax under s. 220.11(3).
1543 3. In the case of a regulated investment company or real
1544 estate investment trust, an amount equal to the excess of the
1545 net long-term capital gain for the taxable year over the amount
1546 of the capital gain dividends attributable to the taxable year.
1547 4. That portion of the wages or salaries paid or incurred
1548 for the taxable year which is equal to the amount of the credit
1549 allowable for the taxable year under s. 220.181. This
1550 subparagraph shall expire on the date specified in s. 290.016
1551 for the expiration of the Florida Enterprise Zone Act.
1552 5. That portion of the ad valorem school taxes paid or
1553 incurred for the taxable year which is equal to the amount of
1554 the credit allowable for the taxable year under s. 220.182. This
1555 subparagraph shall expire on the date specified in s. 290.016
1556 for the expiration of the Florida Enterprise Zone Act.
1557 6. The amount of emergency excise tax paid or accrued as a
1558 liability to this state under chapter 221 which tax is
1559 deductible from gross income in the computation of taxable
1560 income for the taxable year.
1561 7. That portion of assessments to fund a guaranty
1562 association incurred for the taxable year which is equal to the
1563 amount of the credit allowable for the taxable year.
1564 8. In the case of a nonprofit corporation which holds a
1565 pari-mutuel permit and which is exempt from federal income tax
1566 as a farmers’ cooperative, an amount equal to the excess of the
1567 gross income attributable to the pari-mutuel operations over the
1568 attributable expenses for the taxable year.
1569 9. The amount taken as a credit for the taxable year under
1570 s. 220.1895.
1571 10. Up to nine percent of the eligible basis of any
1572 designated project which is equal to the credit allowable for
1573 the taxable year under s. 220.185.
1574 11. The amount taken as a credit for the taxable year under
1575 s. 220.187.
1576 12. The amount taken as a credit for the taxable year under
1577 s. 220.192.
1578 13. The amount taken as a credit for the taxable year under
1579 s. 220.193.
1580 14. Any portion of a qualified investment, as defined in s.
1581 288.9913, which is claimed as a deduction by the taxpayer and
1582 taken as a credit against income tax pursuant to s. 288.9916.
1583 (b) Subtractions.—
1584 1. There shall be subtracted from such taxable income:
1585 a. The net operating loss deduction allowable for federal
1586 income tax purposes under s. 172 of the Internal Revenue Code
1587 for the taxable year,
1588 b. The net capital loss allowable for federal income tax
1589 purposes under s. 1212 of the Internal Revenue Code for the
1590 taxable year,
1591 c. The excess charitable contribution deduction allowable
1592 for federal income tax purposes under s. 170(d)(2) of the
1593 Internal Revenue Code for the taxable year, and
1594 d. The excess contributions deductions allowable for
1595 federal income tax purposes under s. 404 of the Internal Revenue
1596 Code for the taxable year.
1597
1598 However, a net operating loss and a capital loss shall never be
1599 carried back as a deduction to a prior taxable year, but all
1600 deductions attributable to such losses shall be deemed net
1601 operating loss carryovers and capital loss carryovers,
1602 respectively, and treated in the same manner, to the same
1603 extent, and for the same time periods as are prescribed for such
1604 carryovers in ss. 172 and 1212, respectively, of the Internal
1605 Revenue Code. A deduction is not allowed for net operating
1606 losses, net capital losses, or excess contribution deductions
1607 under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
1608 of a water’s edge group that is not a United States member.
1609 Carryovers of net operating losses, net capital losses, or
1610 excess contribution deductions under 26 U.S.C. ss. 170(d)(2),
1611 172, 1212, and 404 may be subtracted only by the member of the
1612 water’s edge group that generates a carryover.
1613 2. There shall be subtracted from such taxable income any
1614 amount to the extent included therein the following:
1615 a. Dividends treated as received from sources without the
1616 United States, as determined under s. 862 of the Internal
1617 Revenue Code.
1618 b. All amounts included in taxable income under s. 78 or s.
1619 951 of the Internal Revenue Code.
1620
1621 However, as to any amount subtracted under this subparagraph,
1622 there shall be added to such taxable income all expenses
1623 deducted on the taxpayer’s return for the taxable year which are
1624 attributable, directly or indirectly, to such subtracted amount.
1625 Further, no amount shall be subtracted with respect to dividends
1626 paid or deemed paid by a Domestic International Sales
1627 Corporation.
1628 3. Amounts received by a member of a water’s edge group as
1629 dividends paid by another member of the water’s edge group shall
1630 be subtracted from the taxable income to the extent that the
1631 dividends are included in the taxable income.
1632 4.3. In computing “adjusted federal income” for taxable
1633 years beginning after December 31, 1976, there shall be allowed
1634 as a deduction the amount of wages and salaries paid or incurred
1635 within this state for the taxable year for which no deduction is
1636 allowed pursuant to s. 280C(a) of the Internal Revenue Code
1637 (relating to credit for employment of certain new employees).
1638 5.4. There shall be subtracted from such taxable income any
1639 amount of nonbusiness income included therein.
1640 6.5. There shall be subtracted any amount of taxes of
1641 foreign countries allowable as credits for taxable years
1642 beginning on or after September 1, 1985, under s. 901 of the
1643 Internal Revenue Code to any corporation which derived less than
1644 20 percent of its gross income or loss for its taxable year
1645 ended in 1984 from sources within the United States, as
1646 described in s. 861(a)(2)(A) of the Internal Revenue Code, not
1647 including credits allowed under ss. 902 and 960 of the Internal
1648 Revenue Code, withholding taxes on dividends within the meaning
1649 of sub-subparagraph 2.a., and withholding taxes on royalties,
1650 interest, technical service fees, and capital gains.
1651 7.6. Notwithstanding any other provision of this code,
1652 except with respect to amounts subtracted pursuant to
1653 subparagraphs 1. and 4. 3., any increment of any apportionment
1654 factor which is directly related to an increment of gross
1655 receipts or income which is deducted, subtracted, or otherwise
1656 excluded in determining adjusted federal income shall be
1657 excluded from both the numerator and denominator of such
1658 apportionment factor. Further, all valuations made for
1659 apportionment factor purposes shall be made on a basis
1660 consistent with the taxpayer’s method of accounting for federal
1661 income tax purposes.
1662 (c) Installment sales occurring after October 19, 1980.—
1663 1. In the case of any disposition made after October 19,
1664 1980, the income from an installment sale shall be taken into
1665 account for the purposes of this code in the same manner that
1666 such income is taken into account for federal income tax
1667 purposes.
1668 2. Any taxpayer who regularly sells or otherwise disposes
1669 of personal property on the installment plan and reports the
1670 income therefrom on the installment method for federal income
1671 tax purposes under s. 453(a) of the Internal Revenue Code shall
1672 report such income in the same manner under this code.
1673 (d) Nonallowable deductions.—A deduction for net operating
1674 losses, net capital losses, or excess contributions deductions
1675 under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
1676 Code which has been allowed in a prior taxable year for Florida
1677 tax purposes shall not be allowed for Florida tax purposes,
1678 notwithstanding the fact that such deduction has not been fully
1679 utilized for federal tax purposes.
1680 (e) Adjustments related to the Federal Economic Stimulus
1681 Act of 2008 and the American Recovery and Reinvestment Act of
1682 2009.—Taxpayers shall be required to make the adjustments
1683 prescribed in this paragraph for Florida tax purposes in
1684 relation to certain tax benefits received pursuant to the
1685 Economic Stimulus Act of 2008 and the American Recovery and
1686 Reinvestment Act of 2009.
1687 1. There shall be added to such taxable income an amount
1688 equal to 100 percent of any amount deducted for federal income
1689 tax purposes as bonus depreciation for the taxable year pursuant
1690 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
1691 amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
1692 No. 111-5, for property placed in service after December 31,
1693 2007, and before January 1, 2010. For the taxable year and for
1694 each of the 6 subsequent taxable years, there shall be
1695 subtracted from such taxable income an amount equal to one
1696 seventh of the amount by which taxable income was increased
1697 pursuant to this subparagraph, notwithstanding any sale or other
1698 disposition of the property that is the subject of the
1699 adjustments and regardless of whether such property remains in
1700 service in the hands of the taxpayer.
1701 2. There shall be added to such taxable income an amount
1702 equal to 100 percent of any amount in excess of $128,000
1703 deducted for federal income tax purposes for the taxable year
1704 pursuant to s. 179 of the Internal Revenue Code of 1986, as
1705 amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
1706 No. 111-5, for taxable years beginning after December 31, 2007,
1707 and before January 1, 2010. For the taxable year and for each of
1708 the 6 subsequent taxable years, there shall be subtracted from
1709 such taxable income one-seventh of the amount by which taxable
1710 income was increased pursuant to this subparagraph,
1711 notwithstanding any sale or other disposition of the property
1712 that is the subject of the adjustments and regardless of whether
1713 such property remains in service in the hands of the taxpayer.
1714 3. There shall be added to such taxable income an amount
1715 equal to the amount of deferred income not included in such
1716 taxable income pursuant to s. 108(i)(1) of the Internal Revenue
1717 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
1718 shall be subtracted from such taxable income an amount equal to
1719 the amount of deferred income included in such taxable income
1720 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
1721 as amended by s. 1231 of Pub. L. No. 111-5.
1722 4. Subtractions available under this paragraph may be
1723 transferred to the surviving or acquiring entity following a
1724 merger or acquisition and used in the same manner and with the
1725 same limitations as specified by this paragraph.
1726 5. The additions and subtractions specified in this
1727 paragraph are intended to adjust taxable income for Florida tax
1728 purposes, and, notwithstanding any other provision of this code,
1729 such additions and subtractions shall be permitted to change a
1730 taxpayer’s net operating loss for Florida tax purposes.
1731 Section 27. Section 220.136, Florida Statutes, is created
1732 to read:
1733 220.136 Determination of the members of a water’s edge
1734 group.—
1735 (1) MEMBERSHIP RULES.—
1736 (a) A corporation having 50 percent or more of its
1737 outstanding voting stock directly or indirectly owned or
1738 controlled by a water’s edge group is presumed to be a member of
1739 the group. A corporation having less than 50 percent of its
1740 outstanding voting stock directly or indirectly controlled by a
1741 water’s edge group is a member of the group if the businesses
1742 activities of the corporation show that the corporation is a
1743 member of the group. All of the income of a corporation that is
1744 a member of a water’s edge group is presumed to be unitary.
1745 (b) A corporation that conducts business outside the United
1746 States is not a member of a water’s edge group if 80 percent or
1747 more of the corporation’s property and payroll, as determined by
1748 the apportionment factors described in ss. 220.15 and 220.1363,
1749 may be assigned to locations outside the United States. However,
1750 such corporations that are incorporated in a tax haven may be a
1751 member of a water’s edge group pursuant to paragraph (a). This
1752 paragraph does not exempt a corporation that is not a member of
1753 a water’s edge group from the provisions of this chapter.
1754 (2) MEMBERSHIP EVALUATION CRITERIA.—
1755 (a) The attribution rules of 26 U.S.C. 318 shall be used to
1756 determine whether voting stock is owned indirectly.
1757 (b) As used in this paragraph, the term “United States”
1758 means the 50 states, the District of Columbia, and Puerto Rico.
1759 (c) The apportionment factors described in ss. 220.15 and
1760 220.1363 shall be used to determine whether a special industry
1761 corporation has engaged in a sufficient amount of activities
1762 outside the United States to exclude it from treatment as a
1763 member of a water’s edge group.
1764 Section 28. Section 220.1363, Florida Statutes, is created
1765 to read:
1766 220.1363 Water’s edge groups; special requirements.—
1767 (1) All members of a water’s edge group must use the
1768 water’s edge reporting method. Under the water’s edge reporting
1769 method:
1770 (a) Adjusted federal income for purposes of s. 220.12 means
1771 the sum of adjusted federal income for all members of the group
1772 as determined for a concurrent tax year.
1773 (b) The numerators and denominators of the apportionment
1774 factors shall be calculated for all members of the group
1775 combined.
1776 (c) Intercompany sales transactions between members of the
1777 group are not included in the numerator or denominator of the
1778 sales factor pursuant to ss. 220.15 and 220.151, regardless of
1779 whether indicia of a sale exist. As used in this subsection, the
1780 term “sale” includes, but is not limited to, loans, payments for
1781 the use of intangibles, dividends, and management fees.
1782 (d) For sales of intangibles, including, but not limited
1783 to, accounts receivable, notes, bonds, and stock, which are made
1784 to entities outside of the group, only the net proceeds are
1785 included in the numerator and denominator of the sales factor.
1786 (e) Sales that are not allocated or apportioned to any
1787 taxing jurisdiction, otherwise known as “nowhere sales,” may not
1788 be included in the numerator or denominator of the sales factor.
1789 (f) The income attributable to the activities in this state
1790 of a corporation that is exempt from taxation under Pub. L. No.
1791 86-272 is excluded from the apportionment factor numerators in
1792 the calculation of corporate income tax even if another member
1793 of the water’s edge group has nexus with this state and is
1794 subject to tax.
1795 (g) For purposes of this section, the term “water’s edge
1796 reporting method” is a method to determine the taxable business
1797 profits of a group of entities conducting a unitary business.
1798 Under this method, the net income of the entities must be added
1799 together along with the additions and subtractions under s.
1800 220.13 and apportioned to this state as a single taxpayer under
1801 s. 220.15 and 220.151. However, each special industry member
1802 included in a water’s edge group return, which would otherwise
1803 be permitted to use a special method of apportionment under s.
1804 220.151, shall convert its single-factor apportionment to a
1805 three-factor apportionment of property, payroll, and sales. The
1806 special industry member shall calculate the denominator of its
1807 property, payroll, and sales factors in the same manner as those
1808 denominators are calculated by members that are not a special
1809 industry member. The numerator of its sales, property, and
1810 payroll factors is the product of the denominator of each factor
1811 multiplied by the premiums or revenue-miles-factor ratio
1812 otherwise applicable under s. 220.151.
1813 (2)(a) A single water’s edge group return must be filed in
1814 the name and federal employer identification number of the
1815 parent corporation if the parent is a member of the group and
1816 has nexus with this state. If the group does not have a parent
1817 corporation, if the parent corporation is not a member of the
1818 group, or if the parent corporation does not have nexus with
1819 this state, the members of the group must choose a member
1820 subject to the Florida corporate income tax to file the return.
1821 The members of the group may not choose another member to file a
1822 corporate income tax return in subsequent years unless the
1823 filing member does not maintain nexus with this state or remain
1824 a member of that group. The return must be signed by an
1825 authorized officer of the filing member as the agent for the
1826 group.
1827 (b) If members of a water’s edge group have different tax
1828 years, the tax year of a majority of the members of the group is
1829 the tax year of the group. If the tax years of a majority of the
1830 members of a group do not correspond, the tax year of the member
1831 that must file the return for the group is the tax year of the
1832 group.
1833 (c)1. A member of a water’s edge group having a tax year
1834 that does not correspond to the tax year of the group shall
1835 determine its income for inclusion on the tax return for the
1836 group. The member shall use:
1837 a. The precise amount of taxable income received during the
1838 months corresponding to the tax year of the group, if the
1839 precise amount can be readily determined from the member’s books
1840 and records.
1841 b. The taxable income of the member converted to conform to
1842 the tax year of the group on the basis of the number of months
1843 falling within the tax year of the group. For example, if the
1844 tax year of the water’s edge group is a calendar year and a
1845 member operates on a fiscal year ending on April 30, the income
1846 of the member shall include 8/12 of the income from the current
1847 tax year and 4/12 of the income from the preceding tax year.
1848 This method to determine the income of a member may be used only
1849 if the return can be timely filed after the end of the tax year
1850 of the group.
1851 c. The taxable income of the member during its tax year
1852 that ends within the tax year of the group.
1853 2. The method of determining the income of a member of a
1854 group whose tax year does not correspond to the tax year of the
1855 group may not change as long as the member remains a member of
1856 the group. The apportionment factors for the member must be
1857 applied to the income of the member for the tax year of the
1858 group.
1859 (3)(a) A water’s edge group return shall include a
1860 computational schedule that:
1861 1. Combines the federal income of all members of the
1862 water’s edge group;
1863 2. Shows all intercompany eliminations;
1864 3. Shows Florida additions and subtractions under s.
1865 220.13; and
1866 4. Shows the calculation of the combined apportionment
1867 factors.
1868 (b) A water’s edge group shall also file a domestic
1869 disclosure spreadsheet in addition to its return. The
1870 spreadsheet shall fully disclose:
1871 1. The income reported to each state.
1872 2. The state tax liability.
1873 3. The method used for apportioning or allocating income to
1874 the various states.
1875 4. Other information required by the department by rule in
1876 order to determine the proper amount of tax due to each state
1877 and to identify the water’s edge group.
1878 (4) The department may adopt rules and forms to administer
1879 this section. The Legislature intends to grant the department
1880 extensive authority to adopt rules and forms describing and
1881 defining principles for determining the existence of a water’s
1882 edge business, definitions of common control, methods of
1883 reporting, and related forms, principles, and other definitions.
1884 Section 29. Section 220.14, Florida Statutes, is amended to
1885 read:
1886 220.14 Exemption.—
1887 (1) In computing a taxpayer’s liability for tax under this
1888 code, there shall be exempt from the tax $5,000 of net income as
1889 defined in s. 220.12 or such lesser amount as will, without
1890 increasing the taxpayer’s federal income tax liability, provide
1891 the state with an amount under this code which is equal to the
1892 maximum federal income tax credit which may be available from
1893 time to time under federal law.
1894 (2) In the case of a taxable year for a period of less than
1895 12 months, the exemption allowed by this section shall be
1896 prorated on the basis of the number of days in such year to 365,
1897 or in the case of a leap year, to 366.
1898 (3) Only one exemption shall be allowed to taxpayers filing
1899 a water’s edge group a consolidated return under this code.
1900 (4) Notwithstanding any other provision of this code, not
1901 more than one exemption under this section may be allowed to the
1902 Florida members of a controlled group of corporations, as
1903 defined in s. 1563 of the Internal Revenue Code with respect to
1904 taxable years ending on or after December 31, 1970, filing
1905 separate returns under this code. The exemption described in
1906 this section shall be divided equally among such Florida members
1907 of the group, unless all of such members consent, at such time
1908 and in such manner as the department shall by regulation
1909 prescribe, to an apportionment plan providing for an unequal
1910 allocation of such exemption.
1911 Section 30. Subsection (5) of section 220.15, Florida
1912 Statutes, is amended to read:
1913 220.15 Apportionment of adjusted federal income.—
1914 (5) The sales factor is a fraction the numerator of which
1915 is the total sales of the taxpayer in this state during the
1916 taxable year or period and the denominator of which is the total
1917 sales of the taxpayer everywhere during the taxable year or
1918 period.
1919 (a) As used in this subsection, the term “sales” means all
1920 gross receipts of the taxpayer except interest, dividends,
1921 rents, royalties, and gross receipts from the sale, exchange,
1922 maturity, redemption, or other disposition of securities.
1923 However:
1924 1. Rental income is included in the term if a significant
1925 portion of the taxpayer’s business consists of leasing or
1926 renting real or tangible personal property; and
1927 2. Royalty income is included in the term if a significant
1928 portion of the taxpayer’s business consists of dealing in or
1929 with the production, exploration, or development of minerals.
1930 (b)1. Sales of tangible personal property occur in this
1931 state if the property is delivered or shipped to a purchaser
1932 within this state, regardless of the f.o.b. point, other
1933 conditions of the sale, or ultimate destination of the property,
1934 unless shipment is made via a common or contract carrier.
1935 However, for industries in NAICS National Number 311411, if the
1936 ultimate destination of the product is to a location outside
1937 this state, regardless of the method of shipment or f.o.b.
1938 point, the sale shall not be deemed to occur in this state. As
1939 used in this paragraph, “NAICS” means those classifications
1940 contained in the North American Industry Classification System,
1941 as published in 2007 by the Office of Management and Budget,
1942 Executive Office of the President.
1943 2. When citrus fruit is delivered by a cooperative for a
1944 grower-member, by a grower-member to a cooperative, or by a
1945 grower-participant to a Florida processor, the sales factor for
1946 the growers for such citrus fruit delivered to such processor
1947 shall be the same as the sales factor for the most recent
1948 taxable year of that processor. That sales factor, expressed
1949 only as a percentage and not in terms of the dollar volume of
1950 sales, so as to protect the confidentiality of the sales of the
1951 processor, shall be furnished on the request of such a grower
1952 promptly after it has been determined for that taxable year.
1953 3. Reimbursement of expenses under an agency contract
1954 between a cooperative, a grower-member of a cooperative, or a
1955 grower and a processor is not a sale within this state.
1956 (c) Sales of a financial organization, including, but not
1957 limited to, banking and savings institutions, investment
1958 companies, real estate investment trusts, and brokerage
1959 companies, occur in this state if derived from:
1960 1. Fees, commissions, or other compensation for financial
1961 services rendered within this state;
1962 2. Gross profits from trading in stocks, bonds, or other
1963 securities managed within this state;
1964 3. Interest received within this state, other than interest
1965 from loans secured by mortgages, deeds of trust, or other liens
1966 upon real or tangible personal property located without this
1967 state, and dividends received within this state;
1968 4. Interest charged to customers at places of business
1969 maintained within this state for carrying debit balances of
1970 margin accounts, without deduction of any costs incurred in
1971 carrying such accounts;
1972 5. Interest, fees, commissions, or other charges or gains
1973 from loans secured by mortgages, deeds of trust, or other liens
1974 upon real or tangible personal property located in this state or
1975 from installment sale agreements originally executed by a
1976 taxpayer or the taxpayer’s agent to sell real or tangible
1977 personal property located in this state;
1978 6. Rents from real or tangible personal property located in
1979 this state; or
1980 7. Any other gross income, including other interest,
1981 resulting from the operation as a financial organization within
1982 this state.
1983
1984 In computing the amounts under this paragraph, any amount
1985 received by a member of an affiliated group (determined under s.
1986 1504(a) of the Internal Revenue Code, but without reference to
1987 whether any such corporation is an “includable corporation”
1988 under s. 1504(b) of the Internal Revenue Code) from another
1989 member of such group shall be included only to the extent such
1990 amount exceeds expenses of the recipient directly related
1991 thereto.
1992 Section 31. Subsection (1) of section 220.183, Florida
1993 Statutes, is amended to read:
1994 220.183 Community contribution tax credit.—
1995 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
1996 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
1997 SPENDING.—
1998 (a) There shall be allowed a credit of 50 percent of a
1999 community contribution against any tax due for a taxable year
2000 under this chapter.
2001 (b) No business firm shall receive more than $200,000 in
2002 annual tax credits for all approved community contributions made
2003 in any one year.
2004 (c) The total amount of tax credit which may be granted for
2005 all programs approved under this section, s. 212.08(5)(p), and
2006 s. 624.5105 is $10.5 million annually for projects that provide
2007 homeownership opportunities for low-income or very-low-income
2008 households as defined in s. 420.9071(19) and (28) and $3.5
2009 million annually for all other projects.
2010 (d) All proposals for the granting of the tax credit shall
2011 require the prior approval of the Office of Tourism, Trade, and
2012 Economic Development.
2013 (e) If the credit granted pursuant to this section is not
2014 fully used in any one year because of insufficient tax liability
2015 on the part of the business firm, the unused amount may be
2016 carried forward for a period not to exceed 5 years. The
2017 carryover credit may be used in a subsequent year when the tax
2018 imposed by this chapter for such year exceeds the credit for
2019 such year under this section after applying the other credits
2020 and unused credit carryovers in the order provided in s.
2021 220.02(8).
2022 (f) A taxpayer who files a Florida consolidated return as a
2023 member of an affiliated group pursuant to s. 220.131(1) may be
2024 allowed the credit on a consolidated return basis.
2025 (f)(g) A taxpayer who is eligible to receive the credit
2026 provided for in s. 624.5105 is not eligible to receive the
2027 credit provided by this section.
2028 (g)(h) Notwithstanding paragraph (c), and for the 2008-2009
2029 fiscal year only, the total amount of tax credit which may be
2030 granted for all programs approved under this section, s.
2031 212.08(5)(p), and s. 624.5105 is $13 million annually for
2032 projects that provide homeownership opportunities for low-income
2033 or very-low-income households as defined in s. 420.9071(19) and
2034 (28) and $3.5 million annually for all other projects. This
2035 paragraph expires June 30, 2009.
2036 Section 32. Subsection (1) of section 220.1845, Florida
2037 Statutes, is amended to read:
2038 220.1845 Contaminated site rehabilitation tax credit.—
2039 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
2040 (a) A credit in the amount of 50 percent of the costs of
2041 voluntary cleanup activity that is integral to site
2042 rehabilitation at the following sites is available against any
2043 tax due for a taxable year under this chapter:
2044 1. A drycleaning-solvent-contaminated site eligible for
2045 state-funded site rehabilitation under s. 376.3078(3);
2046 2. A drycleaning-solvent-contaminated site at which site
2047 rehabilitation is undertaken by the real property owner pursuant
2048 to s. 376.3078(11), if the real property owner is not also, and
2049 has never been, the owner or operator of the drycleaning
2050 facility where the contamination exists; or
2051 3. A brownfield site in a designated brownfield area under
2052 s. 376.80.
2053 (b) A tax credit applicant, or multiple tax credit
2054 applicants working jointly to clean up a single site, may not be
2055 granted more than $500,000 per year in tax credits for each site
2056 voluntarily rehabilitated. Multiple tax credit applicants shall
2057 be granted tax credits in the same proportion as their
2058 contribution to payment of cleanup costs. Subject to the same
2059 conditions and limitations as provided in this section, a
2060 municipality, county, or other tax credit applicant which
2061 voluntarily rehabilitates a site may receive not more than
2062 $500,000 per year in tax credits which it can subsequently
2063 transfer subject to the provisions in paragraph (f) (g).
2064 (c) If the credit granted under this section is not fully
2065 used in any one year because of insufficient tax liability on
2066 the part of the corporation, the unused amount may be carried
2067 forward for up to 5 years. The carryover credit may be used in a
2068 subsequent year if the tax imposed by this chapter for that year
2069 exceeds the credit for which the corporation is eligible in that
2070 year after applying the other credits and unused carryovers in
2071 the order provided by s. 220.02(8). If during the 5-year period
2072 the credit is transferred, in whole or in part, pursuant to
2073 paragraph (f) (g), each transferee has 5 years after the date of
2074 transfer to use its credit.
2075 (d) A taxpayer that files a consolidated return in this
2076 state as a member of an affiliated group under s. 220.131(1) may
2077 be allowed the credit on a consolidated return basis up to the
2078 amount of tax imposed upon the consolidated group.
2079 (d)(e) A tax credit applicant that receives state-funded
2080 site rehabilitation under s. 376.3078(3) for rehabilitation of a
2081 drycleaning-solvent-contaminated site is ineligible to receive
2082 credit under this section for costs incurred by the tax credit
2083 applicant in conjunction with the rehabilitation of that site
2084 during the same time period that state-administered site
2085 rehabilitation was underway.
2086 (e)(f) The total amount of the tax credits which may be
2087 granted under this section is $2 million annually.
2088 (f)(g)1. Tax credits that may be available under this
2089 section to an entity eligible under s. 376.30781 may be
2090 transferred after a merger or acquisition to the surviving or
2091 acquiring entity and used in the same manner and with the same
2092 limitations.
2093 2. The entity or its surviving or acquiring entity as
2094 described in subparagraph 1., may transfer any unused credit in
2095 whole or in units of at least 25 percent of the remaining
2096 credit. The entity acquiring such credit may use it in the same
2097 manner and with the same limitation as described in this
2098 section. Such transferred credits may not be transferred again
2099 although they may succeed to a surviving or acquiring entity
2100 subject to the same conditions and limitations as described in
2101 this section.
2102 3. If the credit is reduced due to a determination by the
2103 Department of Environmental Protection or an examination or
2104 audit by the Department of Revenue, the tax deficiency shall be
2105 recovered from the first entity, or the surviving or acquiring
2106 entity that claimed the credit up to the amount of credit taken.
2107 Any subsequent deficiencies shall be assessed against the entity
2108 acquiring and claiming the credit, or in the case of multiple
2109 succeeding entities in the order of credit succession.
2110 (g)(h) In order to encourage completion of site
2111 rehabilitation at contaminated sites being voluntarily cleaned
2112 up and eligible for a tax credit under this section, the tax
2113 credit applicant may claim an additional 25 percent of the total
2114 cleanup costs, not to exceed $500,000, in the final year of
2115 cleanup as evidenced by the Department of Environmental
2116 Protection issuing a “No Further Action” order for that site.
2117 (h)(i) In order to encourage the construction of housing
2118 that meets the definition of affordable provided in s. 420.0004,
2119 an applicant for the tax credit may claim an additional 25
2120 percent of the total site rehabilitation costs that are eligible
2121 for tax credits under this section, not to exceed $500,000. In
2122 order to receive this additional tax credit, the applicant must
2123 provide a certification letter from the Florida Housing Finance
2124 Corporation, the local housing authority, or other governmental
2125 agency that is a party to the use agreement indicating that the
2126 construction on the brownfield site has received a certificate
2127 of occupancy and the brownfield site has a properly recorded
2128 instrument that limits the use of the property to housing that
2129 meets the definition of affordable provided in s. 420.0004.
2130 (i)(j) In order to encourage the redevelopment of a
2131 brownfield site, as defined in the brownfield site
2132 rehabilitation agreement, that is hindered by the presence of
2133 solid waste, as defined in s. 403.703, a tax credit applicant,
2134 or multiple tax credit applicants working jointly to clean up a
2135 single brownfield site, may also claim costs required to address
2136 solid waste removal as defined in this paragraph in accordance
2137 with rules of the Department of Environmental Protection.
2138 Multiple tax credit applicants shall be granted tax credits in
2139 the same proportion as each applicant’s contribution to payment
2140 of solid waste removal costs. These costs are eligible for a tax
2141 credit provided the applicant submits an affidavit stating that,
2142 after consultation with appropriate local government officials
2143 and the Department of Environmental Protection, to the best of
2144 the applicant’s knowledge according to such consultation and
2145 available historical records, the brownfield site was never
2146 operated as a permitted solid waste disposal area or was never
2147 operated for monetary compensation and the applicant submits all
2148 other documentation and certifications required by this section.
2149 Under this section, wherever reference is made to “site
2150 rehabilitation,” the Department of Environmental Protection
2151 shall instead consider whether or not the costs claimed are for
2152 solid waste removal. Tax credit applications claiming costs
2153 pursuant to this paragraph shall not be subject to the calendar
2154 year limitation and January 31 annual application deadline, and
2155 the Department of Environmental Protection shall accept a one
2156 time application filed subsequent to the completion by the tax
2157 credit applicant of the applicable requirements listed in this
2158 section. A tax credit applicant may claim 50 percent of the cost
2159 for solid waste removal, not to exceed $500,000, after the
2160 applicant has determined solid waste removal is completed for
2161 the brownfield site. A solid waste removal tax credit
2162 application may be filed only once per brownfield site. For the
2163 purposes of this section, the term:
2164 1. “Solid waste disposal area” means a landfill, dump, or
2165 other area where solid waste has been disposed of.
2166 2. “Monetary compensation” means the fees that were charged
2167 or the assessments that were levied for the disposal of solid
2168 waste at a solid waste disposal area.
2169 3. “Solid waste removal” means removal of solid waste from
2170 the land surface or excavation of solid waste from below the
2171 land surface and removal of the solid waste from the brownfield
2172 site. The term also includes:
2173 a. Transportation of solid waste to a licensed or exempt
2174 solid waste management facility or to a temporary storage area.
2175 b. Sorting or screening of solid waste prior to removal
2176 from the site.
2177 c. Deposition of solid waste at a permitted or exempt solid
2178 waste management facility, whether the solid waste is disposed
2179 of or recycled.
2180 (j)(k) In order to encourage the construction and operation
2181 of a new health care facility as defined in s. 408.032 or s.
2182 408.07, or a health care provider as defined in s. 408.07 or s.
2183 408.7056, on a brownfield site, an applicant for a tax credit
2184 may claim an additional 25 percent of the total site
2185 rehabilitation costs, not to exceed $500,000, if the applicant
2186 meets the requirements of this paragraph. In order to receive
2187 this additional tax credit, the applicant must provide
2188 documentation indicating that the construction of the health
2189 care facility or health care provider by the applicant on the
2190 brownfield site has received a certificate of occupancy or a
2191 license or certificate has been issued for the operation of the
2192 health care facility or health care provider.
2193 Section 33. Effective January 1, 2011, subsection (1) of
2194 section 220.1845, Florida Statutes, as amended by this act, and
2195 subsection (3) of that section, are amended to read:
2196 220.1845 Contaminated site rehabilitation tax credit.—
2197 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
2198 (a) A credit in the amount of 50 percent of the costs of
2199 voluntary cleanup activity that is integral to site
2200 rehabilitation at the following sites is available against any
2201 tax due for a taxable year under this chapter:
2202 1. A drycleaning-solvent-contaminated site eligible for
2203 state-funded site rehabilitation under s. 376.3078(3);
2204 2. A drycleaning-solvent-contaminated site at which site
2205 rehabilitation is undertaken by the real property owner pursuant
2206 to s. 376.3078(11), if the real property owner is not also, and
2207 has never been, the owner or operator of the drycleaning
2208 facility where the contamination exists; or
2209 3. A brownfield site in a designated brownfield area under
2210 s. 376.80.
2211 (b) A tax credit applicant, or multiple tax credit
2212 applicants working jointly to clean up a single site, may not be
2213 granted more than $500,000 per year in tax credits for each site
2214 voluntarily rehabilitated. Multiple tax credit applicants shall
2215 be granted tax credits in the same proportion as their
2216 contribution to payment of cleanup costs. Subject to the same
2217 conditions and limitations as provided in this section, a
2218 municipality, county, or other tax credit applicant which
2219 voluntarily rehabilitates a site may receive not more than
2220 $500,000 per year in tax credits which it can subsequently
2221 transfer subject to the provisions in paragraph (g) (f).
2222 (c) If the credit granted under this section is not fully
2223 used in any one year because of insufficient tax liability on
2224 the part of the corporation, the unused amount may be carried
2225 forward for up to 5 years. The carryover credit may be used in a
2226 subsequent year if the tax imposed by this chapter for that year
2227 exceeds the credit for which the corporation is eligible in that
2228 year after applying the other credits and unused carryovers in
2229 the order provided by s. 220.02(8). If during the 5-year period
2230 the credit is transferred, in whole or in part, pursuant to
2231 paragraph (g) (f), each transferee has 5 years after the date of
2232 transfer to use its credit.
2233 (d) A taxpayer that receives credit under s. 199.10555 is
2234 ineligible to receive credit under this section in a given tax
2235 year.
2236 (e)(d) A tax credit applicant that receives state-funded
2237 site rehabilitation under s. 376.3078(3) for rehabilitation of a
2238 drycleaning-solvent-contaminated site is ineligible to receive
2239 credit under this section for costs incurred by the tax credit
2240 applicant in conjunction with the rehabilitation of that site
2241 during the same time period that state-administered site
2242 rehabilitation was underway.
2243 (f)(e) The total amount of the tax credits which may be
2244 granted under this section and s. 199.10555 is $2 million
2245 annually.
2246 (g)(f)1. Tax credits that may be available under this
2247 section to an entity eligible under s. 376.30781 may be
2248 transferred after a merger or acquisition to the surviving or
2249 acquiring entity and used in the same manner and with the same
2250 limitations.
2251 2. The entity or its surviving or acquiring entity as
2252 described in subparagraph 1., may transfer any unused credit in
2253 whole or in units of at least 25 percent of the remaining
2254 credit. The entity acquiring such credit may use it in the same
2255 manner and with the same limitation as described in this
2256 section. Such transferred credits may not be transferred again
2257 although they may succeed to a surviving or acquiring entity
2258 subject to the same conditions and limitations as described in
2259 this section.
2260 3. If the credit is reduced due to a determination by the
2261 Department of Environmental Protection or an examination or
2262 audit by the Department of Revenue, the tax deficiency shall be
2263 recovered from the first entity, or the surviving or acquiring
2264 entity that claimed the credit up to the amount of credit taken.
2265 Any subsequent deficiencies shall be assessed against the entity
2266 acquiring and claiming the credit, or in the case of multiple
2267 succeeding entities in the order of credit succession.
2268 (h)(g) In order to encourage completion of site
2269 rehabilitation at contaminated sites being voluntarily cleaned
2270 up and eligible for a tax credit under this section, the tax
2271 credit applicant may claim an additional 25 percent of the total
2272 cleanup costs, not to exceed $500,000, in the final year of
2273 cleanup as evidenced by the Department of Environmental
2274 Protection issuing a “No Further Action” order for that site.
2275 (i)(h) In order to encourage the construction of housing
2276 that meets the definition of affordable provided in s. 420.0004,
2277 an applicant for the tax credit may claim an additional 25
2278 percent of the total site rehabilitation costs that are eligible
2279 for tax credits under this section, not to exceed $500,000. In
2280 order to receive this additional tax credit, the applicant must
2281 provide a certification letter from the Florida Housing Finance
2282 Corporation, the local housing authority, or other governmental
2283 agency that is a party to the use agreement indicating that the
2284 construction on the brownfield site has received a certificate
2285 of occupancy and the brownfield site has a properly recorded
2286 instrument that limits the use of the property to housing that
2287 meets the definition of affordable provided in s. 420.0004.
2288 (j)(i) In order to encourage the redevelopment of a
2289 brownfield site, as defined in the brownfield site
2290 rehabilitation agreement, that is hindered by the presence of
2291 solid waste, as defined in s. 403.703, a tax credit applicant,
2292 or multiple tax credit applicants working jointly to clean up a
2293 single brownfield site, may also claim costs required to address
2294 solid waste removal as defined in this paragraph in accordance
2295 with rules of the Department of Environmental Protection.
2296 Multiple tax credit applicants shall be granted tax credits in
2297 the same proportion as each applicant’s contribution to payment
2298 of solid waste removal costs. These costs are eligible for a tax
2299 credit provided the applicant submits an affidavit stating that,
2300 after consultation with appropriate local government officials
2301 and the Department of Environmental Protection, to the best of
2302 the applicant’s knowledge according to such consultation and
2303 available historical records, the brownfield site was never
2304 operated as a permitted solid waste disposal area or was never
2305 operated for monetary compensation and the applicant submits all
2306 other documentation and certifications required by this section.
2307 Under this section, wherever reference is made to “site
2308 rehabilitation,” the Department of Environmental Protection
2309 shall instead consider whether or not the costs claimed are for
2310 solid waste removal. Tax credit applications claiming costs
2311 pursuant to this paragraph shall not be subject to the calendar
2312 year limitation and January 31 annual application deadline, and
2313 the Department of Environmental Protection shall accept a one
2314 time application filed subsequent to the completion by the tax
2315 credit applicant of the applicable requirements listed in this
2316 section. A tax credit applicant may claim 50 percent of the cost
2317 for solid waste removal, not to exceed $500,000, after the
2318 applicant has determined solid waste removal is completed for
2319 the brownfield site. A solid waste removal tax credit
2320 application may be filed only once per brownfield site. For the
2321 purposes of this section, the term:
2322 1. “Solid waste disposal area” means a landfill, dump, or
2323 other area where solid waste has been disposed of.
2324 2. “Monetary compensation” means the fees that were charged
2325 or the assessments that were levied for the disposal of solid
2326 waste at a solid waste disposal area.
2327 3. “Solid waste removal” means removal of solid waste from
2328 the land surface or excavation of solid waste from below the
2329 land surface and removal of the solid waste from the brownfield
2330 site. The term also includes:
2331 a. Transportation of solid waste to a licensed or exempt
2332 solid waste management facility or to a temporary storage area.
2333 b. Sorting or screening of solid waste prior to removal
2334 from the site.
2335 c. Deposition of solid waste at a permitted or exempt solid
2336 waste management facility, whether the solid waste is disposed
2337 of or recycled.
2338 (k)(j) In order to encourage the construction and operation
2339 of a new health care facility as defined in s. 408.032 or s.
2340 408.07, or a health care provider as defined in s. 408.07 or s.
2341 408.7056, on a brownfield site, an applicant for a tax credit
2342 may claim an additional 25 percent of the total site
2343 rehabilitation costs, not to exceed $500,000, if the applicant
2344 meets the requirements of this paragraph. In order to receive
2345 this additional tax credit, the applicant must provide
2346 documentation indicating that the construction of the health
2347 care facility or health care provider by the applicant on the
2348 brownfield site has received a certificate of occupancy or a
2349 license or certificate has been issued for the operation of the
2350 health care facility or health care provider.
2351 (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
2352 FORFEITURE.—
2353 (a) The Department of Revenue may adopt rules to prescribe
2354 any necessary forms required to claim a tax credit under this
2355 section and to provide the administrative guidelines and
2356 procedures required to administer this section.
2357 (b) In addition to its existing audit and investigation
2358 authority relating to chapter 199 and this chapter, the
2359 Department of Revenue may perform any additional financial and
2360 technical audits and investigations, including examining the
2361 accounts, books, or records of the tax credit applicant, which
2362 are necessary to verify the site rehabilitation costs included
2363 in a tax credit return and to ensure compliance with this
2364 section. The Department of Environmental Protection shall
2365 provide technical assistance, when requested by the Department
2366 of Revenue, on any technical audits performed pursuant to this
2367 section.
2368 (c) It is grounds for forfeiture of previously claimed and
2369 received tax credits if the Department of Revenue determines, as
2370 a result of either an audit or information received from the
2371 Department of Environmental Protection, that a taxpayer received
2372 tax credits pursuant to this section to which the taxpayer was
2373 not entitled. In the case of fraud, the taxpayer shall be
2374 prohibited from claiming any future tax credits under this
2375 section or s. 199.10555.
2376 1. The taxpayer is responsible for returning forfeited tax
2377 credits to the Department of Revenue, and such funds shall be
2378 paid into the General Revenue Fund of the state.
2379 2. The taxpayer shall file with the Department of Revenue
2380 an amended tax return or such other report as the Department of
2381 Revenue prescribes by rule and shall pay any required tax within
2382 60 days after the taxpayer receives notification from the
2383 Department of Environmental Protection pursuant to s. 376.30781
2384 that previously approved tax credits have been revoked or
2385 modified, if uncontested, or within 60 days after a final order
2386 is issued following proceedings involving a contested revocation
2387 or modification order.
2388 3. A notice of deficiency may be issued by the Department
2389 of Revenue at any time within 5 years after the date the
2390 taxpayer receives notification from the Department of
2391 Environmental Protection pursuant to s. 376.30781 that
2392 previously approved tax credits have been revoked or modified.
2393 If a taxpayer fails to notify the Department of Revenue of any
2394 change in its tax credit claimed, a notice of deficiency may be
2395 issued at any time. In either case, the amount of any proposed
2396 assessment set forth in such notice of deficiency shall be
2397 limited to the amount of any deficiency resulting under this
2398 section from the recomputation of the taxpayer’s tax for the
2399 taxable year.
2400 4. Any taxpayer that fails to report and timely pay any tax
2401 due as a result of the forfeiture of its tax credit is in
2402 violation of this section and is subject to applicable penalty
2403 and interest.
2404 Section 34. Subsection (5) of section 220.187, Florida
2405 Statutes, is amended to read:
2406 220.187 Credits for contributions to nonprofit scholarship
2407 funding organizations.—
2408 (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS;
2409 LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.—
2410 (a) There is allowed a credit of 100 percent of an eligible
2411 contribution against any tax due for a taxable year under this
2412 chapter. However, such a credit may not exceed 75 percent of the
2413 tax due under this chapter for the taxable year, after the
2414 application of any other allowable credits by the taxpayer. The
2415 credit granted by this section shall be reduced by the
2416 difference between the amount of federal corporate income tax
2417 taking into account the credit granted by this section and the
2418 amount of federal corporate income tax without application of
2419 the credit granted by this section.
2420 (b) For each state fiscal year, the total amount of tax
2421 credits and carryforward of tax credits which may be granted
2422 under this section and s. 624.51055 is $118 million.
2423 (c) A taxpayer who files a Florida consolidated return as a
2424 member of an affiliated group pursuant to s. 220.131(1) may be
2425 allowed the credit on a consolidated return basis; however, the
2426 total credit taken by the affiliated group is subject to the
2427 limitation established under paragraph (a).
2428 (c)(d) Effective for tax years beginning January 1, 2006, a
2429 taxpayer may rescind all or part of its allocated tax credit
2430 under this section. The amount rescinded shall become available
2431 for purposes of the cap for that state fiscal year under this
2432 section to an eligible taxpayer as approved by the department if
2433 the taxpayer receives notice from the department that the
2434 rescindment has been accepted by the department and the taxpayer
2435 has not previously rescinded any or all of its tax credit
2436 allocation under this section more than once in the previous 3
2437 tax years. Any amount rescinded under this paragraph shall
2438 become available to an eligible taxpayer on a first-come, first
2439 served basis based on tax credit applications received after the
2440 date the rescindment is accepted by the department.
2441 (d)(e) A taxpayer who is eligible to receive the credit
2442 provided for in s. 624.51055 is not eligible to receive the
2443 credit provided by this section.
2444 Section 35. Subsection (3) of section 220.191, Florida
2445 Statutes, is amended to read:
2446 220.191 Capital investment tax credit.—
2447 (3)(a) Notwithstanding subsection (2), an annual credit
2448 against the tax imposed by this chapter shall be granted to a
2449 qualifying business which establishes a qualifying project
2450 pursuant to subparagraph (1)(h)3., in an amount equal to the
2451 lesser of $15 million or 5 percent of the eligible capital costs
2452 made in connection with a qualifying project, for a period not
2453 to exceed 20 years beginning with the commencement of operations
2454 of the project. The tax credit shall be granted against the
2455 corporate income tax liability of the qualifying business and as
2456 further provided in paragraph (c). The total tax credit provided
2457 pursuant to this subsection shall be equal to no more than 100
2458 percent of the eligible capital costs of the qualifying project.
2459 (b) If the credit granted under this subsection is not
2460 fully used in any one year because of insufficient tax liability
2461 on the part of the qualifying business, the unused amount may be
2462 carried forward for a period not to exceed 20 years after the
2463 commencement of operations of the project. The carryover credit
2464 may be used in a subsequent year when the tax imposed by this
2465 chapter for that year exceeds the credit for which the
2466 qualifying business is eligible in that year under this
2467 subsection after applying the other credits and unused
2468 carryovers in the order provided by s. 220.02(8).
2469 (c) The credit granted under this subsection may be used in
2470 whole or in part by the qualifying business or any corporation
2471 that is either a member of that qualifying business’s affiliated
2472 group of corporations, is a related entity taxable as a
2473 cooperative under subchapter T of the Internal Revenue Code, or,
2474 if the qualifying business is an entity taxable as a cooperative
2475 under subchapter T of the Internal Revenue Code, is related to
2476 the qualifying business. Any entity related to the qualifying
2477 business may continue to file as a member of a Florida-nexus
2478 consolidated group pursuant to a prior election made under s.
2479 220.131(1), Florida Statutes (1985), even if the parent of the
2480 group changes due to a direct or indirect acquisition of the
2481 former common parent of the group. Any credit can be used by any
2482 of the affiliated companies or related entities referenced in
2483 this paragraph to the same extent as it could have been used by
2484 the qualifying business. However, any such use shall not operate
2485 to increase the amount of the credit or extend the period within
2486 which the credit must be used.
2487 Section 36. Subsection (2) of section 220.192, Florida
2488 Statutes, is amended to read:
2489 220.192 Renewable energy technologies investment tax
2490 credit.—
2491 (2) TAX CREDIT.—For tax years beginning on or after January
2492 1, 2007, a credit against the tax imposed by this chapter shall
2493 be granted in an amount equal to the eligible costs. Credits may
2494 be used in tax years beginning January 1, 2007, and ending
2495 December 31, 2010, after which the credit shall expire. If the
2496 credit is not fully used in any one tax year because of
2497 insufficient tax liability on the part of the corporation, the
2498 unused amount may be carried forward and used in tax years
2499 beginning January 1, 2007, and ending December 31, 2012, after
2500 which the credit carryover expires and may not be used. A
2501 taxpayer that files a consolidated return in this state as a
2502 member of an affiliated group under s. 220.131(1) may be allowed
2503 the credit on a consolidated return basis up to the amount of
2504 tax imposed upon the consolidated group. Any eligible cost for
2505 which a credit is claimed and which is deducted or otherwise
2506 reduces federal taxable income shall be added back in computing
2507 adjusted federal income under s. 220.13.
2508 Section 37. Subsection (3) of section 220.193, Florida
2509 Statutes, is amended to read:
2510 220.193 Florida renewable energy production credit.—
2511 (3) An annual credit against the tax imposed by this
2512 section shall be allowed to a taxpayer, based on the taxpayer’s
2513 production and sale of electricity from a new or expanded
2514 Florida renewable energy facility. For a new facility, the
2515 credit shall be based on the taxpayer’s sale of the facility’s
2516 entire electrical production. For an expanded facility, the
2517 credit shall be based on the increases in the facility’s
2518 electrical production that are achieved after May 1, 2006.
2519 (a) The credit shall be $0.01 for each kilowatt-hour of
2520 electricity produced and sold by the taxpayer to an unrelated
2521 party during a given tax year.
2522 (b) The credit may be claimed for electricity produced and
2523 sold on or after January 1, 2007. Beginning in 2008 and
2524 continuing until 2011, each taxpayer claiming a credit under
2525 this section must first apply to the department by February 1 of
2526 each year for an allocation of available credit. The department,
2527 in consultation with the commission, shall develop an
2528 application form. The application form shall, at a minimum,
2529 require a sworn affidavit from each taxpayer certifying the
2530 increase in production and sales that form the basis of the
2531 application and certifying that all information contained in the
2532 application is true and correct.
2533 (c) If the amount of credits applied for each year exceeds
2534 $5 million, the department shall award to each applicant a
2535 prorated amount based on each applicant’s increased production
2536 and sales and the increased production and sales of all
2537 applicants.
2538 (d) If the credit granted pursuant to this section is not
2539 fully used in one year because of insufficient tax liability on
2540 the part of the taxpayer, the unused amount may be carried
2541 forward for a period not to exceed 5 years. The carryover credit
2542 may be used in a subsequent year when the tax imposed by this
2543 chapter for such year exceeds the credit for such year, after
2544 applying the other credits and unused credit carryovers in the
2545 order provided in s. 220.02(8).
2546 (e) A taxpayer that files a consolidated return in this
2547 state as a member of an affiliated group under s. 220.131(1) may
2548 be allowed the credit on a consolidated return basis up to the
2549 amount of tax imposed upon the consolidated group.
2550 (e)(f)1. Tax credits that may be available under this
2551 section to an entity eligible under this section may be
2552 transferred after a merger or acquisition to the surviving or
2553 acquiring entity and used in the same manner with the same
2554 limitations.
2555 2. The entity or its surviving or acquiring entity as
2556 described in subparagraph 1. may transfer any unused credit in
2557 whole or in units of no less than 25 percent of the remaining
2558 credit. The entity acquiring such credit may use it in the same
2559 manner and with the same limitations under this section. Such
2560 transferred credits may not be transferred again although they
2561 may succeed to a surviving or acquiring entity subject to the
2562 same conditions and limitations as described in this section.
2563 3. In the event the credit provided for under this section
2564 is reduced as a result of an examination or audit by the
2565 department, such tax deficiency shall be recovered from the
2566 first entity or the surviving or acquiring entity to have
2567 claimed such credit up to the amount of credit taken. Any
2568 subsequent deficiencies shall be assessed against any entity
2569 acquiring and claiming such credit, or in the case of multiple
2570 succeeding entities in the order of credit succession.
2571 (f)(g) Notwithstanding any other provision of this section,
2572 credits for the production and sale of electricity from a new or
2573 expanded Florida renewable energy facility may be earned between
2574 January 1, 2007, and June 30, 2010. The combined total amount of
2575 tax credits which may be granted for all taxpayers under this
2576 section is limited to $5 million per state fiscal year.
2577 (g)(h) A taxpayer claiming a credit under this section
2578 shall be required to add back to net income that portion of its
2579 business deductions claimed on its federal return paid or
2580 incurred for the taxable year which is equal to the amount of
2581 the credit allowable for the taxable year under this section.
2582 (h)(i) A taxpayer claiming credit under this section may
2583 not claim a credit under s. 220.192. A taxpayer claiming credit
2584 under s. 220.192 may not claim a credit under this section.
2585 (i)(j) When an entity treated as a partnership or a
2586 disregarded entity under this chapter produces and sells
2587 electricity from a new or expanded renewable energy facility,
2588 the credit earned by such entity shall pass through in the same
2589 manner as items of income and expense pass through for federal
2590 income tax purposes. When an entity applies for the credit and
2591 the entity has received the credit by a pass-through, the
2592 application must identify the taxpayer that passed the credit
2593 through, all taxpayers that received the credit, and the
2594 percentage of the credit that passes through to each recipient
2595 and must provide other information that the department requires.
2596 (j)(k) A taxpayer’s use of the credit granted pursuant to
2597 this section does not reduce the amount of any credit available
2598 to such taxpayer under s. 220.186.
2599 Section 38. Section 220.51, Florida Statutes, is amended to
2600 read:
2601 220.51 Promulgation of rules and regulations.—In accordance
2602 with the Administrative Procedure Act, chapter 120, the
2603 department is authorized to make, promulgate, and enforce such
2604 reasonable rules and regulations, and to prescribe such forms
2605 relating to the administration and enforcement of the provisions
2606 of this code, as it may deem appropriate, including:
2607 (1) Rules for initial implementation of this code and for
2608 taxpayers’ transitional taxable years commencing before and
2609 ending after January 1, 1972; and
2610 (2) Rules or regulations to clarify whether certain groups,
2611 organizations, or associations formed under the laws of this
2612 state or any other state, country, or jurisdiction shall be
2613 deemed “taxpayers” for the purposes of this code, in accordance
2614 with the legislative declarations of intent in s. 220.02.; and
2615 (3) Regulations relating to consolidated reporting for
2616 affiliated groups of corporations, in order to provide for an
2617 equitable and just administration of this code with respect to
2618 multicorporate taxpayers.
2619 Section 39. Section 220.64, Florida Statutes, is amended to
2620 read:
2621 220.64 Other provisions applicable to franchise tax.—To the
2622 extent that they are not manifestly incompatible with the
2623 provisions of this part, parts I, III, IV, V, VI, VIII, IX, and
2624 X of this code and ss. 220.12, 220.13, 220.136, 220.1363,
2625 220.15, and 220.16 ss. 220.12, 220.13, 220.15, and 220.16 apply
2626 to the franchise tax imposed by this part. Under rules
2627 prescribed in s. 220.131, a consolidated return may be filed by
2628 any affiliated group of corporations composed of one or more
2629 banks or savings associations, its or their Florida parent
2630 corporation, and any nonbank or nonsavings subsidiaries of such
2631 parent corporation.
2632 Section 40. Subsections (9) and (10) of section 376.30781,
2633 Florida Statutes, are amended to read:
2634 376.30781 Tax credits for rehabilitation of drycleaning
2635 solvent-contaminated sites and brownfield sites in designated
2636 brownfield areas; application process; rulemaking authority;
2637 revocation authority.—
2638 (9) On or before May 1, the Department of Environmental
2639 Protection shall inform each tax credit applicant that is
2640 subject to the January 31 annual application deadline of the
2641 applicant’s eligibility status and the amount of any tax credit
2642 due. The department shall provide each eligible tax credit
2643 applicant with a tax credit certificate that must be submitted
2644 with its tax return to the Department of Revenue to claim the
2645 tax credit or be transferred pursuant to s. 220.1845(1)(f)(g).
2646 The May 1 deadline for annual site rehabilitation tax credit
2647 certificate awards shall not apply to any tax credit application
2648 for which the department has issued a notice of deficiency
2649 pursuant to subsection (8). The department shall respond within
2650 90 days after receiving a response from the tax credit applicant
2651 to such a notice of deficiency. Credits may not result in the
2652 payment of refunds if total credits exceed the amount of tax
2653 owed.
2654 (10) For solid waste removal, new health care facility or
2655 health care provider, and affordable housing tax credit
2656 applications, the Department of Environmental Protection shall
2657 inform the applicant of the department’s determination within 90
2658 days after the application is deemed complete. Each eligible tax
2659 credit applicant shall be informed of the amount of its tax
2660 credit and provided with a tax credit certificate that must be
2661 submitted with its tax return to the Department of Revenue to
2662 claim the tax credit or be transferred pursuant to s.
2663 220.1845(1)(f)(g). Credits may not result in the payment of
2664 refunds if total credits exceed the amount of tax owed.
2665 Section 41. Effective January 1, 2011, paragraph (a) of
2666 subsection (3), subsection (4), and paragraph (a) of subsection
2667 (14) of section 376.30781, Florida Statutes, are amended, and
2668 subsections (9) and (10) of that section, as amended by this
2669 act, are amended, to read:
2670 376.30781 Tax credits for rehabilitation of drycleaning
2671 solvent-contaminated sites and brownfield sites in designated
2672 brownfield areas; application process; rulemaking authority;
2673 revocation authority.—
2674 (3)(a) A credit in the amount of 50 percent of the costs of
2675 voluntary cleanup activity that is integral to site
2676 rehabilitation at the following sites is allowed pursuant to ss.
2677 199.10555 and s. 220.1845:
2678 1. A drycleaning-solvent-contaminated site eligible for
2679 state-funded site rehabilitation under s. 376.3078(3);
2680 2. A drycleaning-solvent-contaminated site at which site
2681 rehabilitation is undertaken by the real property owner pursuant
2682 to s. 376.3078(11), if the real property owner is not also, and
2683 has never been, the owner or operator of the drycleaning
2684 facility where the contamination exists; or
2685 3. A brownfield site in a designated brownfield area under
2686 s. 376.80.
2687 (4) The Department of Environmental Protection is
2688 responsible for allocating the tax credits provided for in ss.
2689 199.10555 and s. 220.1845, which may not exceed a total of $2
2690 million in tax credits annually.
2691 (9) On or before May 1, the Department of Environmental
2692 Protection shall inform each tax credit applicant that is
2693 subject to the January 31 annual application deadline of the
2694 applicant’s eligibility status and the amount of any tax credit
2695 due. The department shall provide each eligible tax credit
2696 applicant with a tax credit certificate that must be submitted
2697 with its tax return to the Department of Revenue to claim the
2698 tax credit or be transferred pursuant to s. 199.10555(1)(g) or
2699 s. 220.1845(1)(g)(f). The May 1 deadline for annual site
2700 rehabilitation tax credit certificate awards shall not apply to
2701 any tax credit application for which the department has issued a
2702 notice of deficiency pursuant to subsection (8). The department
2703 shall respond within 90 days after receiving a response from the
2704 tax credit applicant to such a notice of deficiency. Credits may
2705 not result in the payment of refunds if total credits exceed the
2706 amount of tax owed.
2707 (10) For solid waste removal, new health care facility or
2708 health care provider, and affordable housing tax credit
2709 applications, the Department of Environmental Protection shall
2710 inform the applicant of the department’s determination within 90
2711 days after the application is deemed complete. Each eligible tax
2712 credit applicant shall be informed of the amount of its tax
2713 credit and provided with a tax credit certificate that must be
2714 submitted with its tax return to the Department of Revenue to
2715 claim the tax credit or be transferred pursuant to s.
2716 199.10555(1)(g) or s. 220.1845(1)(g)(f). Credits may not result
2717 in the payment of refunds if total credits exceed the amount of
2718 tax owed.
2719 (14)(a) A tax credit applicant who receives state-funded
2720 site rehabilitation under s. 376.3078(3) for rehabilitation of a
2721 drycleaning-solvent-contaminated site is ineligible to receive a
2722 tax credit under s. 199.10555 or s. 220.1845 for costs incurred
2723 by the tax credit applicant in conjunction with the
2724 rehabilitation of that site during the same time period that
2725 state-administered site rehabilitation was underway.
2726 Section 42. Transitional rules.—
2727 (1) For the first tax year beginning on or after January 1,
2728 2011, a taxpayer that filed a Florida corporate income tax
2729 return in the preceding tax year and is a member of a water’s
2730 edge group shall compute its income together with all members of
2731 its water’s edge group and file a combined Florida corporate
2732 income tax return with all members of its water’s edge group.
2733 (2) An affiliated group of corporations that filed a
2734 Florida consolidated corporate income tax return pursuant to an
2735 election provided in s. 220.131, Florida Statutes, shall cease
2736 filing a Florida consolidated return for tax years beginning on
2737 or after January 1, 2011, and shall file a combined Florida
2738 corporate income tax return with all members of its water’s edge
2739 group.
2740 (3) An affiliated group of corporations that filed a
2741 Florida consolidated corporate income tax return pursuant to the
2742 election in s. 220.131(1), Florida Statutes (1985), which
2743 allowed the affiliated group to make an election within 90 days
2744 after December 20, 1984, or upon filing the taxpayer’s first
2745 return after December 20, 1984, whichever is later, shall cease
2746 filing a Florida consolidated corporate income tax return using
2747 that method for tax years beginning on or after January 1, 2011,
2748 and shall file a combined Florida corporate income tax return
2749 with all members of its water’s edge group.
2750 (4) Taxpayers that are not members of a water’s edge group
2751 remain subject to chapter 220, Florida Statutes, and shall file
2752 a separate Florida corporate income tax return as previously
2753 required.
2754 (5) For the tax years beginning on or after January 1,
2755 2011, a tax return for a member of a water’s edge group must be
2756 a combined Florida corporate income tax return that includes tax
2757 information for all members of the water’s edge group. The tax
2758 return must be filed by a member that has a nexus with this
2759 state.
2760 Section 43. Of the funds recaptured pursuant to this act,
2761 the sum of $50 million is appropriated from the General Revenue
2762 Fund to the State University System for workforce education, to
2763 be allocated by the Board of Governors; the sum of $50 million
2764 is appropriated from the General Revenue Fund to community
2765 colleges for workforce education, to be allocated by the State
2766 Board of Education; and the remainder of such funds, as
2767 determined by the Revenue Estimating Conference, shall be
2768 appropriated from the General Revenue Fund and allocated as
2769 provided in the General Appropriations Act to the various school
2770 districts to reduce the required local effort millage.
2771 Section 44. Section 220.131, Florida Statutes, is repealed.
2772 Section 45. (1) The funds provided from the implementation
2773 of this act shall be deposited annually into the Educational
2774 Enhancement Trust Fund and appropriated from the fund as
2775 follows:
2776 (a) Twenty-five percent to the Board of Governors of the
2777 State University System for allocation to state universities.
2778 (b) Twenty-five percent to the Department of Education for
2779 allocation to community colleges.
2780 (c) Twenty-five percent to the Department of Education for
2781 allocation to school districts for K-12 education.
2782 (d) Twenty-five percent to the Agency for Workforce
2783 Innovation for allocation to early learning coalitions under the
2784 Voluntary Prekindergarten Education Program.
2785 (2) It is the intent of the Legislature that the revenue
2786 generated from collections derived from the Millionaire’s Tax
2787 Act shall be used specifically for enhancements to higher
2788 education, K-12 education, and prekindergarten education in this
2789 state and shall not supplant any general revenue appropriations
2790 for such higher education, K-12 education, and prekindergarten
2791 education.
2792 (3) Each entity allocated funds pursuant to this section
2793 shall determine how best to expend the additional enhancement
2794 funds appropriated to such entity pursuant to this section.
2795 Section 46. Except as otherwise expressly provided in this
2796 act, this act shall take effect July 1, 2010.