Florida Senate - 2011                             CS for SB 1506
       
       
       
       By the Committee on Commerce and Tourism; and Senator Ring
       
       
       
       
       577-03323-11                                          20111506c1
    1                        A bill to be entitled                      
    2         An act relating to the corporate income tax; amending
    3         s. 213.053, F.S.; allowing the Office of Tourism,
    4         Trade, and Economic Development access to confidential
    5         taxpayer information related to the single sales
    6         apportionment factor; amending s. 220.131, F.S.;
    7         conforming provisions to changes made by the act;
    8         creating s. 220.153, F.S.; providing for the
    9         apportionment of certain taxpayer’s adjusted federal
   10         income solely by the sales factor provided in s.
   11         220.15, F.S.; providing for eligibility based on the
   12         taxpayer’s capital expenditures and number of full
   13         time employees; providing an application process;
   14         authorizing the Department of Revenue to examine and
   15         verify that a taxpayer has correctly apportioned its
   16         taxes; authorizing the Office of Tourism, Trade, and
   17         Economic Development to approve and revoke approval of
   18         an application; providing for the recapture of unpaid
   19         taxes, interest, and penalties; authorizing the office
   20         and the department to adopt rules; providing an
   21         effective date.
   22  
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Paragraph (k) of subsection (8) of section
   26  213.053, Florida Statutes, is amended to read:
   27         213.053 Confidentiality and information sharing.—
   28         (8) Notwithstanding any other provision of this section,
   29  the department may provide:
   30         (k)1. Payment information relative to chapters 199, 201,
   31  202, 212, 220, 221, and 624 to the Office of Tourism, Trade, and
   32  Economic Development, or its employees or agents that are
   33  identified in writing by the office to the department, in the
   34  administration of the tax refund program for qualified defense
   35  contractors and space flight business contractors authorized by
   36  s. 288.1045 and the tax refund program for qualified target
   37  industry businesses authorized by s. 288.106.
   38         2. Information relative to tax credits taken by a business
   39  under s. 220.191 and exemptions or tax refunds received by a
   40  business under s. 212.08(5)(j) to the Office of Tourism, Trade,
   41  and Economic Development, or its employees or agents that are
   42  identified in writing by the office to the department, in the
   43  administration and evaluation of the capital investment tax
   44  credit program authorized in s. 220.191 and the semiconductor,
   45  defense, and space tax exemption program authorized in s.
   46  212.08(5)(j).
   47         3. Information relative to tax credits taken by a taxpayer
   48  pursuant to the tax credit programs created in ss. 193.017;
   49  212.08(5)(g),(h),(n),(o) and (p); 212.08(15); 212.096; 212.097;
   50  212.098; 220.181; 220.182; 220.183; 220.184; 220.1845; 220.185;
   51  220.1895; 220.19; 220.191; 220.192; 220.193; 288.0656; 288.99;
   52  290.007; 376.30781; 420.5093; 420.5099; 550.0951; 550.26352;
   53  550.2704; 601.155; 624.509; 624.510; 624.5105; and 624.5107 to
   54  the Office of Tourism, Trade, and Economic Development, or its
   55  employees or agents that are identified in writing by the office
   56  to the department, for use in the administration or evaluation
   57  of such programs.
   58  
   59  Disclosure of information under this subsection shall be
   60  pursuant to a written agreement between the executive director
   61  and the agency. Such agencies, governmental or nongovernmental,
   62  shall be bound by the same requirements of confidentiality as
   63  the Department of Revenue. Breach of confidentiality is a
   64  misdemeanor of the first degree, punishable as provided by s.
   65  775.082 or s. 775.083.
   66         4. Information relative to single sales factor
   67  apportionment used by a taxpayer pursuant to the program created
   68  in s. 220.153 to the Office of Tourism, Trade, and Economic
   69  Development, or its employees or agents that are identified in
   70  writing by the office to the department, for use in the
   71  administration or evaluation of the program.
   72         Section 2. Subsection (5) of section 220.131, Florida
   73  Statutes, is amended to read:
   74         220.131 Adjusted federal income; affiliated groups.—
   75         (5) Each taxpayer shall apportion adjusted federal income
   76  under s. 220.15 as a member of an affiliated group which files a
   77  consolidated return under this section on the basis of
   78  apportionment factors described in s. 220.15. For the purposes
   79  of this subsection, each special industry member included in an
   80  affiliated group filing a consolidated return hereunder, who
   81  which member would otherwise be permitted to use a special
   82  method of apportionment under s. 220.151 or s. 220.153, shall
   83  construct the numerator of its sales, property, and payroll
   84  factors, respectively, by multiplying the denominator of each
   85  such factor by the premiums or revenue miles factor ratio
   86  otherwise applicable under pursuant to s. 220.151 in the manner
   87  prescribed by the department by rule.
   88         Section 3. Section 220.153, Florida Statutes, is created to
   89  read:
   90         220.153 Apportionment by sales factor.—
   91         (1) APPORTIONMENT OF TAXES; ELIGIBILITY.—A taxpayer, not
   92  including a financial organization as defined in s. 220.15(6) or
   93  a bank, savings association, international banking facility, or
   94  banking organization as defined in s. 220.62, doing business
   95  within and without this state, who applies and demonstrates to
   96  the Office of Tourism, Trade, and Economic Development that, on
   97  or after July 1, 2013, it has made qualified capital
   98  expenditures equal to or exceeding $250 million and has
   99  maintained the number of full-time employees who were employed
  100  by the taxpayer in this state at the time it notified the office
  101  of its intent to apply for apportionment pursuant to this
  102  section, may apportion its adjusted federal income solely by the
  103  sales factor set forth in s. 220.15(5), commencing in the
  104  taxable year of such determination. For the purposes of this
  105  section, the term “capital expenditure” means an investment in
  106  land, buildings, or equipment. Also, for the purposes of this
  107  section, the term “full-time employee” does not include an
  108  employee who was hired to construct improvements to real
  109  property.
  110         (2) APPLICATION PROCESS.—
  111         (a) To qualify as a taxpayer who is eligible to apportion
  112  its adjusted federal income under this section:
  113         1. The taxpayer must notify the Office of Tourism, Trade,
  114  and Economic Development of its intent to submit an application
  115  to apportion its adjusted federal income in order to commence
  116  the 2-year period for measuring qualified capital expenditures.
  117         2. The application must be submitted within 2 years after
  118  notifying the office of the taxpayer’s intent to qualify. The
  119  application must be made under oath and provide such information
  120  as the office reasonably requires by rule for determining the
  121  applicant’s eligibility to apportion adjusted federal income.
  122  The taxpayer is responsible for affirmatively demonstrating to
  123  the satisfaction of the office that it meets the eligibility
  124  requirements.
  125         (b) The taxpayer notice and application forms shall be
  126  established by the office by rule. The office shall acknowledge
  127  receipt of the notice and approve or deny the application in
  128  writing within 45 days after receipt.
  129         (c) Upon approval, the taxpayer, by the due date for filing
  130  its tax return for the taxable year during which its eligibility
  131  has been determined, including any extensions thereof, may elect
  132  to apportion its adjusted federal income by filing a return for
  133  the taxable year using the method provided under this chapter.
  134         (d) Once made, a taxpayer may not revoke the election for 4
  135  taxable years, at which time the taxpayer may renew the election
  136  by the due date, or extended due date, for filing its tax return
  137  by filing a return for the next taxable year using the method
  138  provided under this chapter. If the taxpayer does not renew its
  139  election, it shall apportion its adjusted federal income
  140  pursuant to s. 220.15 and must reapply to apportion its adjusted
  141  federal income pursuant to this section.
  142         (3) REVIEW AUTHORITY; RECAPTURE OF TAX.—
  143         (a) In addition to its existing audit authority, the
  144  department may perform any financial and technical review and
  145  investigation, including examining the accounts, books, and
  146  records of the taxpayer as necessary, to verify that the
  147  taxpayer’s tax return correctly computes and apportions adjusted
  148  federal income and to ensure compliance with this chapter.
  149         (b) The Office of Tourism, Trade, and Economic Development
  150  may, by order, revoke its decision to grant eligibility for
  151  apportionment, and may also order the recalculation of
  152  apportionment factors to those applicable under s. 220.15 if, as
  153  the result of an audit, investigation, or examination, it
  154  determines that information provided by the taxpayer in the
  155  application, or in a statement, representation, record, report,
  156  plan, or other document provided to the office to become
  157  eligible for apportionment, was materially false at the time it
  158  was made and that an individual acting on behalf of the taxpayer
  159  knew, or should have known, that the information submitted was
  160  false. The taxpayer shall pay such additional taxes and interest
  161  as may be due pursuant to this chapter computed as the
  162  difference between the tax that would have been due under the
  163  apportionment formula provided in s. 220.15 for such years and
  164  the tax actually paid. In addition, the department shall assess
  165  a penalty equal to 100 percent of the additional tax due.
  166         (c) The office shall immediately notify the department of
  167  an order affecting a taxpayers eligibility to apportion tax
  168  pursuant to this section. A taxpayer who is liable for past tax
  169  must file an amended return with the department, or such other
  170  report as the department prescribes by rule, and pay any
  171  required tax, interest, and penalty within 60 days after the
  172  taxpayer receives notification from the office that the
  173  previously approved credits have been revoked. If the revocation
  174  is contested, the taxpayer shall file an amended return or other
  175  report within 30 days after an order becomes final. A taxpayer
  176  who fails to pay the past tax, interest, and penalty by the due
  177  date is subject to the penalties provided in s. 220.803.
  178         (4) RULES.—The Office of Tourism, Trade, and Economic
  179  Development and the department may adopt rules to administer
  180  this section.
  181         Section 4. This act shall take effect July 1, 2011.