Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SB 504
       
       
       
       
       
       
                                Ì192286BÎ192286                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: RS            .                                
                  03/10/2014           .                                
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       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 66 - 153
    4  and insert:
    5         (4)With respect to the payment of taxes on purchases made
    6  through a private-label credit card program:
    7         (a) If consumer accounts or receivables are found to be
    8  worthless or uncollectible, the dealer may claim a credit for,
    9  or obtain a refund of, the tax remitted by the dealer on the
   10  unpaid balance due if:
   11         1. The accounts or receivables have been charged off as bad
   12  debt on the lender’s books and records on or after January 1,
   13  2014;
   14         2. A credit was not previously claimed and a refund was not
   15  previously allowed on any portion of the accounts or
   16  receivables; and
   17         3. The credit or refund is claimed within 12 months after
   18  the month in which the bad debt is charged off by the lender for
   19  federal income tax purposes.
   20         (b) If the dealer or the lender subsequently collects, in
   21  whole or in part, the accounts or receivables for which a credit
   22  or refund has been granted under paragraph (a), the dealer must
   23  include the taxable percentage of the amount collected in the
   24  first return filed after the collection and pay the tax on the
   25  portion of that amount for which a credit or refund was granted.
   26         (c)The credit or refund allowed includes all credit sale
   27  transaction amounts that are outstanding in the specific
   28  private-label credit card account or receivable at the time the
   29  account or receivable is charged off, regardless of the date on
   30  which the credit sale transaction actually occurred.
   31         (d)A dealer may use one of the following methods to
   32  determine the amount of the credit or refund:
   33         1. An apportionment method to substantiate the amount of
   34  tax imposed under this chapter which is included in the bad debt
   35  to which the credit or refund applies. The method must use the
   36  dealer’s Florida and non-Florida sales, the dealer’s taxable and
   37  nontaxable sales, and the amount of tax the dealer remitted to
   38  this state; or
   39         2. A specified percentage of the accounts or receivables
   40  giving rise to the credit or refund, which is derived from a
   41  sampling of the dealer’s or lender’s records in accordance with
   42  a methodology agreed upon by the department and the dealer.
   43         (e)For purposes of computing the credit or refund,
   44  payments on the accounts or receivables shall be allocated based
   45  on the terms and conditions of the contract between the dealer
   46  or lender and the consumer.
   47         (f)The credit or refund for tax on bad debt may be claimed
   48  on any return filed by an entity related by a direct or indirect
   49  common ownership of 50 percent or more.
   50         (g) The amount of the credit or refund a dealer is eligible
   51  to recover under this subsection is limited to the following:
   52         1.For amounts charged off during the calendar year ending
   53  December 31, 2014, 25 percent of the tax paid to the department
   54  which is attributable to bad debt.
   55         2.For amounts charged off during the calendar year ending
   56  December 31, 2015, 50 percent of the tax paid to the department
   57  which is attributable to bad debt.
   58         3.For amounts charged off during the calendar year ending
   59  December 31, 2016, 75 percent of the tax paid to the department
   60  which is attributable to bad debt.
   61         4.For amounts charged off on or after January 1, 2017, the
   62  full amount paid to the department which is attributable to bad
   63  debt.
   64         (h)As used in this subsection, the term:
   65         1. Dealer’s affiliates” means an entity affiliated with
   66  the dealer under 26 U.S.C. s. 1504 or an entity that would be an
   67  affiliate under that section if the entity were a corporation.
   68         2. “Lender” means a person who owns or has owned a private
   69  label credit card account or an interest in a private-label
   70  credit card receivable that:
   71         a. The person purchased directly from a dealer who remitted
   72  the tax imposed under this chapter or from the dealer’s
   73  affiliates, or that was transferred from a third party;
   74         b. The person originated pursuant to that person’s contract
   75  with a dealer who remitted the tax imposed under this chapter or
   76  with the dealer’s affiliates; or
   77         c. Is affiliated in the manner described under 26 U.S.C. s.
   78  1504, regardless of whether the different entities are
   79  corporations, to a person described in sub-subparagraph a. or
   80  sub-subparagraph b. or to an assignee or other transferee of
   81  such person.
   82         3. “Private-label credit card” means a charge card or
   83  credit card that carries, refers to, or is branded with the name
   84  or logo of a dealer and can be used for purchases from the
   85  dealer whose name or logo appears on the card or for purchases
   86  from the dealer’s affiliates or franchisees.
   87  
   88  ================= T I T L E  A M E N D M E N T ================
   89  And the title is amended as follows:
   90         Delete lines 6 - 7
   91  and insert:
   92  
   93