The Florida Senate

199.012  Short title.

199.023  Definitions.

199.032  Levy of annual tax.

199.033  Securities in a Florida's Future Investment Fund; tax rate.

199.042  Due date of annual tax.

199.052  Annual tax returns; payment of annual tax.

199.057  Corporate election to pay stockholders' annual tax.

199.062  Annual tax information reports.

199.103  Basis of assessment; valuation.

199.1055  Contaminated site rehabilitation tax credit.

199.106  Credit for taxes imposed by other states.

199.012  Short title.--This chapter shall be known and may be cited as the "Intangible Personal Property Tax Act."

History.--s. 1, ch. 71-134.

199.023  Definitions.--As used in this chapter:

(1)  "Intangible personal property" means all personal property which is not in itself intrinsically valuable, but which derives its chief value from that which it represents, including, but not limited to, the following:

(a)  All stocks or shares of incorporated or unincorporated companies, business trusts, and mutual funds.

(b)  All notes, bonds, and other obligations for the payment of money.

(c)  All condominium and cooperative apartment leases of recreation facilities, land leases, and leases of other commonly used facilities.

(d)  Except for any leasehold or other possessory interest described in s. 4(a), Art. VII of the State Constitution or s. 196.199(7), all leasehold or other possessory interests in real property owned by the United States, the state, any political subdivision of the state, any municipality of the state, or any agency, authority, and other public body corporate of the state, which are undeveloped or predominantly used for residential or commercial purposes and upon which rental payments are due.

(2)  "Money" includes, without limitation, United States legal tender, certificates of deposit, cashier's and certified checks, bills of exchange, drafts, the cash equivalent of annuities and life insurance policies, and similar instruments, which are held by a taxpayer, or deposited with or held by a banking organization or any other person.

(3)  "Person" means any individual, firm, partnership, joint adventure, syndicate, or other group or combination acting as a unit, association, corporation, estate, trust, business trust, trustee, personal representative, receiver, or other fiduciary and includes the plural as well as the singular.

(4)  "Taxpayer" means any person liable for taxes imposed under this chapter and the heirs, successors, assignees, and transferees of any such person.

(5)  "Department" means the Department of Revenue.

(6)  "In the state" means within the exterior limits of Florida.

(7)  A resident has a "beneficial interest" in a trust if the resident has a vested interest, even if subject to divestment, which includes at least a current right to income and either a power to revoke the trust or a general power of appointment, as defined in 26 U.S.C. s. 2041(b)(1).

(8)  "Affiliated group" means one or more chains of corporations or limited liability companies connected through stock ownership or membership interest in a limited liability company with a common parent corporation or limited liability company, for which:

(a)  Stock or membership interest in a limited liability company possessing at least 80 percent of the voting power of all classes of stock or membership interest in a limited liability company and at least 80 percent of each class of the nonvoting stock or membership interest in a limited liability company of each corporation or limited liability company, except for the common parent corporation or limited liability company, is owned directly by one or more of the other corporations or limited liability companies; and

(b)  The common parent corporation or limited liability company directly owns stock or membership interest in a limited liability company possessing at least 80 percent of the voting power of all classes of stock or membership interest in a limited liability company and at least 80 percent of each class of the nonvoting stock or membership interest in a limited liability company of at least one of the other corporations or limited liability companies.

As used in this subsection, the terms "nonvoting stock" and "membership interest in a limited liability company" do not include nonvoting stock or membership interest in a limited liability company which is limited and preferred as to dividends. For purposes of this chapter, a common parent may be a corporation or a limited liability company.

(9)  "Banking organization" means:

(a)  A bank organized and existing under the laws of this state;

(b)  A national bank organized and existing pursuant to the provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq., and maintaining its principal office in this state;

(c)  An Edge Act corporation organized pursuant to the provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 611 et seq., and maintaining an office in this state;

(d)  An international bank agency licensed pursuant to the laws of this state;

(e)  A federal agency licensed pursuant to ss. 4 and 5 of the International Banking Act of 1978 to maintain an office in this state;

(f)  A savings association organized and existing under the laws of this state;

(g)  A federal association organized and existing pursuant to the provisions of the Home Owners' Loan Act of 1933, 12 U.S.C. ss. 1461 et seq., and maintaining its principal office in this state; or

(h)  A Florida export finance corporation organized and existing pursuant to the provisions of part V of chapter 288.

(10)  "International banking facility" means a set of asset and liability accounts segregated on the books and records of a banking organization that includes only international banking facility deposits, borrowings, and extensions of credit as those terms are defined pursuant to s. 655.071(2).

(11)  "International banking transaction" means:

(a)  The financing of the exportation from, or the importation into, the United States or between jurisdictions abroad of tangible personal property or services;

(b)  The financing of the production, preparation, storage, or transportation of tangible personal property or services which are identifiable as being directly and solely for export from, or import into, the United States or between jurisdictions abroad;

(c)  The financing of contracts, projects, or activities to be performed substantially abroad, except those transactions secured by a mortgage, deed of trust, or other lien upon real property located in the state;

(d)  The receipt of deposits or borrowings or the extensions of credit by an international banking facility, except the loan or deposit of funds secured by mortgage, deed of trust, or other lien upon real property located in the state; or

(e)  Entering into foreign exchange trading or hedging transactions in connection with the activities described in paragraph (d).

(12)  "Abroad" means in one or more foreign nations; in the colonies, dependencies, possessions, or territories of a foreign nation or of the United States; or in the Commonwealth of Puerto Rico.

(13)  "Ministerial function" means an act the performance of which does not involve the use of discretion or judgment.

(14)  "Processing activity" means an activity undertaken to administer or service intangible personal property in accordance with such terms, guidelines, criteria, or directions as are provided solely by the owner of the property. Methods, systems, or techniques chosen by the processor to implement such terms, guidelines, criteria, or directions are not considered the exercise of management or control.

History.--s. 1, ch. 71-134; s. 1, ch. 74-237; s. 1, ch. 76-130; s. 4, ch. 76-222; s. 2, ch. 80-136; s. 3, ch. 80-368; s. 1, ch. 81-179; s. 1, ch. 82-83; s. 1, ch. 85-342; s. 23, ch. 88-201; s. 1, ch. 98-132; s. 73, ch. 99-2; s. 1, ch. 99-242; s. 1, ch. 2000-173.

199.032  Levy of annual tax.--Beginning January 1, 2006, an annual tax of 0.5 mill is imposed on each dollar of the just valuation of all intangible personal property that has a taxable situs in this state, except for notes and other obligations for the payment of money, other than bonds, which are secured by mortgage, deed of trust, or other lien upon real property situated in the state. This tax shall be assessed and collected as provided in this chapter.

History.--s. 1, ch. 71-134; s. 1, ch. 71-987; s. 2, ch. 76-130; s. 13, ch. 83-216; s. 2, ch. 85-342; s. 6, ch. 89-356; s. 1, ch. 90-132; s. 20, ch. 90-203; s. 1, ch. 92-319; s. 4, ch. 99-242; s. 2, ch. 2000-173; s. 1, ch. 2005-270.

199.033  Securities in a Florida's Future Investment Fund; tax rate.--

(1)  Notwithstanding the provisions of this chapter, the tax imposed under s. 199.032 on securities in a Florida's Future Investment Fund shall apply at the rate of .85 mill when the average daily balance in such funds exceeds $2 billion and at the rate of .70 mill when the average daily balance in such funds exceeds $5 billion.

(2)  This section shall not apply in any year in which the revenues of the foundation in the previous calendar year are less than the tax savings allowed by this section. "Tax savings" means the difference between the tax that would be imposed pursuant to s. 199.032 and the tax rate specified in subsection (1).

History.--s. 2, ch. 97-188; s. 2, ch. 99-242; s. 3, ch. 2000-173.

199.042  Due date of annual tax.--

(1)  The annual tax on intangible personal property shall be due and payable on June 30 of each year. Payment of the tax shall be made to the department upon filing of the return required by s. 199.052. A return mailed to the department shall be considered timely filed if it bears a postmark no later than the due date.

(2)  A discount for early payment of the annual tax shall be allowed as follows: for payment on or before the last day of February, 4 percent; for payment on or before March 31, 3 percent; for payment on or before April 30, 2 percent; and for payment after April 30 but on or before May 31, 1 percent.

History.--s. 1, ch. 71-134; s. 3, ch. 72-277; s. 2, ch. 82-83; s. 3, ch. 85-342; s. 3, ch. 86-152.

199.052  Annual tax returns; payment of annual tax.--

(1)  An annual intangible tax return must be filed with the department by every corporation authorized to do business in this state or doing business in this state and by every person, regardless of domicile, who on January 1 owns, controls, or manages intangible personal property which has a taxable situs in this state. For purposes of this chapter, "control" or "manage" does not include any ministerial function or any processing activity. The return shall be due on June 30 of each year. It shall list separately the character, description, and just valuation of all such property.

(2)  No person, corporation, agent, or fiduciary shall be required to pay the annual tax in any year when the aggregate annual tax upon the intangible personal property, after exemptions but before application of any discount for early filing, would be less than $60. In such case, an annual return is not required. Agents and fiduciaries shall report for each person for whom they hold intangible personal property if the aggregate annual tax on such person is $60 or more.

(3)  A corporation having no intangible tax liability, and required to file an annual report pursuant to s. 607.1622, is not required to file the annual intangible tax return required by this section.

(4)  A husband and wife may file a joint return with regard to all intangible personal property held jointly or individually by them. They shall then be jointly liable for the payment of the annual tax.

(5)  The trustee of a trust is not responsible for returning the trust's intangible personal property and is not required to pay any annual tax on it, although the department may require the trustee to file an informational return.

(6)  Each Florida resident with a beneficial interest, as defined in s. 199.023(7), in a trust is responsible for returning the resident's equitable share of the trust's intangible personal property and paying the annual tax on it. The trustee of a trust may return and pay the tax on the equitable shares of all Florida residents having beneficial interests, in which case the residents need not return such property or pay such tax.

(7)  The personal representative or curator of a Florida estate is primarily responsible for returning the estate's intangible personal property and paying the annual tax on it. The heirs or devisees, however, may individually return their equitable shares of the estate's intangible personal property and pay the tax on such shares, in which case the personal representative or curator need not return such property or pay such tax, although the department may require the personal representative or curator to file an informational return.

(8)  The guardian of the property of a Florida incompetent shall return the incompetent's intangible personal property and pay the annual tax on it. The custodian of a Florida minor under a gifts to minors or similar act shall return the minor's intangible personal property which is subject to the custodianship and pay the annual tax on it.

(9)  Where an agent other than a trustee has control or management of intangible personal property, the principal is primarily responsible for returning such property and paying the annual tax on it, but the agent shall return such property on behalf of the principal and pay the annual tax on it if the principal fails to do so. The department may in any case require the agent to file an informational return.

(10)  An affiliated group may elect to make a consolidated return for any year. The election shall be made by timely filing a consolidated return. Once made, an election may not be revoked, and it is binding for the tax year. The mere making of a consolidated return shall not in itself provide a business situs in this state for intangible personal property held by a corporation. The fact that members of an affiliated group own stock in corporations or membership interest in limited liability companies which do not qualify under the stock ownership or membership interest in a limited liability company requirements as members of an affiliated group shall not preclude the filing of a consolidated return on behalf of the qualified members. Where a consolidated return is made, intercompany accounts, including the capital stock or membership interest in a limited liability company of an includable corporation or limited liability company, other than the parent, owned by another includable corporation or limited liability company, shall not be subject to annual taxation. However, capital stock, or membership interest in a limited liability company, and other intercompany accounts of a nonqualified member of the affiliated group shall be subject to annual tax. Each consolidated return shall be accompanied by documentation identifying all intercompany accounts and containing such other information as the department shall require. Failure to timely file a consolidated return shall not prejudice the taxpayer's right to file a consolidated return, provided that the failure to file a consolidated return is limited to 1 year and the taxpayer's intent to file a consolidated return is evidenced by the taxpayer having filed a consolidated return for the 3 years prior to the year the return was not timely filed.

(11)  Securities held in margin accounts by a security broker not acting as a fiduciary shall be returned, and the annual tax on such securities shall be paid, by the customer owning them. The security broker shall not be required to return or pay the tax on such securities.

(12)  Except as otherwise provided in this section, the owner of intangible personal property is liable for the payment of annual tax on it, and any other person required to return such property is liable for the tax if the owner fails to pay it.

(13)  If a bank or savings association, as defined in s. 220.62, acts as a fiduciary or agent of a trust other than as a trustee, the bank or savings association is not responsible for returning the trust's intangible personal property and is not required to pay any annual tax on it, and the management or control of the bank or savings association shall not be used as the basis for imposing any annual tax on any person or any assets of the trust. If a person acts as a fiduciary or agent for purposes of managing intangible assets owned by another person, such intangible assets shall not have a taxable situs in this state pursuant to s. 199.175 solely by virtue of the management or control of such assets by the person who is not the owner of the assets.

(14)(a)  Except as provided in paragraph (b), all banks and financial organizations filing annual intangible tax returns for their customers shall file return information for taxes due January 1, 1999, and thereafter using machine-sensible media. The information required by this subsection must be reported by banks or financial organizations on machine-sensible media, using specifications and instructions of the department. A bank or financial organization that demonstrates to the satisfaction of the department that a hardship exists is not required to file intangible tax returns for its customers using machine-sensible media. The department shall adopt rules necessary to administer this paragraph.

(b)  A taxpayer may choose to file an annual intangible personal property tax return in a form initiated through an electronic data interchange using an advanced encrypted transmission by means of the Internet or other suitable transmission. The department shall prescribe by rule the format and instructions necessary for such filing to ensure a full collection of taxes due. The acceptable method of transfer, the method, form, and content of the electronic data interchange, and the means, if any, by which the taxpayer will be provided with an acknowledgment shall be prescribed by the department.

History.--s. 1, ch. 71-134; s. 2, ch. 72-277; s. 2, ch. 74-237; s. 1, ch. 76-32; s. 3, ch. 76-261; s. 1, ch. 77-174; s. 1, ch. 79-350; s. 3, ch. 80-136; s. 1, ch. 81-22; s. 3, ch. 81-178; s. 2, ch. 81-179; ss. 3, 5, ch. 82-83; s. 1, ch. 82-227; s. 5, ch. 83-267; s. 4, ch. 83-311; s. 4, ch. 85-342; s. 7, ch. 89-356; s. 26, ch. 91-107; s. 9, ch. 91-112; s. 2, ch. 93-86; s. 3, ch. 96-283; ss. 2, 3, ch. 98-132; ss. 3, 25, ch. 98-342; s. 34, ch. 99-208; s. 3, ch. 99-242; s. 7, ch. 2000-157; s. 4, ch. 2000-173; s. 3, ch. 2000-210; s. 5, ch. 2002-218; s. 32, ch. 2003-254.

199.057  Corporate election to pay stockholders' annual tax.--

(1)  Every corporation incorporated or qualified to do business in this state may elect each tax year to pay the annual tax on any class of its stock, as agent for its Florida stockholders holding such stock.

(2)  To make the election, the corporation shall:

(a)  File written notice with the department on or before June 30 of the year for which the election is made.

(b)  File an annual return with respect to such stock and its own intangible personal property.

(c)  Furnish its Florida stockholders with written notice, on or before April 1 of the year for which the election is made, that the election is being made, including a description of the class or classes of stock which are affected. An electing corporation shall certify on its notice to the department that its stockholders were timely notified of the election.

(3)  No election shall be valid unless timely notice is given to the department under paragraph (2)(a). Once made, an election may not be amended or revoked, and it is binding for the tax year.

History.--s. 5, ch. 85-342.

199.062  Annual tax information reports.--

(1)(a)  On or before June 30 of each year, all security dealers and investment advisers registered under the laws of this state shall file with the department a position statement as of December 31 of the preceding year for each customer whose mailing address is in this state or a statement that the security dealer or investment adviser does not hold securities on account for any customer whose mailing address is in this state. The position statement shall include the customer's name, address, social security number, or federal identification number; the number of units, value, and description, including the Committee on Uniform Security Identification Procedures (CUSIP) number, if any, of all securities held for the customer; and such other information as the department may reasonably require. The information required by this paragraph shall be reported by the dealer or investment adviser on magnetic media, using specifications and instructions of the department, unless the dealer or investment adviser demonstrates that an undue hardship exists.

(b)1.  The department may require security dealers and investment advisers registered in this state to transmit once every 2 years a copy of the department's intangible tax brochure to each customer whose mailing address is in this state.

2.  The department may require property appraisers to send, at such times and in such manner as the department and the property appraisers jointly determine, a copy of the department's intangible tax brochure to each owner of Florida property.

(2)  All fiduciaries shall serve the department with a copy of each inventory required to be prepared or filed in the circuit court under general law or rules adopted by the Supreme Court relating to decedent's estates, trusts, or guardianships. No such inventory required to be filed in the circuit court may be approved by the court until such copy as required by this subsection has been filed with the department. When an inventory is not required to be filed in the circuit court, the personal representative of a decedent's estate shall serve the department with a copy of one inventory as provided in s. 733.604, and all other fiduciaries shall return such information as shall be prescribed by rule of the department.

History.--s. 1, ch. 71-134; s. 5, ch. 74-237; s. 1, ch. 79-33; s. 4, ch. 81-178; s. 4, ch. 82-83; s. 1, ch. 82-227; ss. 6, 7, 14, ch. 83-267; ss. 5, 6, 14, ch. 83-311; s. 6, ch. 85-342; s. 4, ch. 86-152; s. 9, ch. 89-356; s. 5, ch. 92-320; s. 60, ch. 2002-218.

199.103  Basis of assessment; valuation.--All intangible personal property shall be subject to the annual tax at its just valuation as of January 1 of each year. Such property shall be valued in the following manner:

(1)  Shares of stock of corporations, or any interest of a limited partner in any limited partnership, regularly listed on any public stock exchange or regularly traded over-the-counter shall be valued at their closing prices on the last business day of the previous calendar year.

(2)  Shares or units of companies or trusts registered under the Investment Company Act of 1940, as amended, including mutual funds, money market funds, and unit investment trusts where such shares or units are not exempt under s. 199.185, shall be valued at the net asset value of such shares or units on the last business day of the previous calendar year.

(3)  Bonds regularly listed on any public stock exchange or regularly traded over-the-counter shall be valued at their closing bid prices on the last business day of the previous calendar year.

(4)  Shares of stocks, bonds, or similar instruments of corporations not listed on any public stock exchange or not regularly traded over-the-counter shall be valued as of January 1 of each year on the basis of those factors customarily considered in determining fair market value.

(5)  Accounts receivable shall be valued at their face value as of January 1 of each year, less a reasonable allowance for uncollectible accounts.

(6)  All notes and other obligations shall have a value equal to their unpaid balance as of January 1 of each year, unless the taxpayer can establish a lesser value upon proof satisfactory to the department.

(7)  All other forms of intangible personal property shall be valued on the basis of those factors customarily considered in determining fair market value.

(8)  Stocks or shares of a savings association or middle tier stock holding company, held by a parent mutual holding company, whose depositors are members of the mutual holding company, which converted from a mutual savings association to a mutual holding company pursuant to 12 U.S.C. s. 1467a.(o), shall be valued as of January 1 each year on the same basis as ownership in the mutual savings association was valued for intangible tax purposes prior to the conversion. Stocks or shares of such a converted association which are held by individuals or entities other than the parent mutual holding company shall be valued pursuant to subsection (1) or subsection (4).

History.--s. 1, ch. 71-134; s. 8, ch. 85-342; s. 9, ch. 86-152; s. 6, ch. 87-316; s. 1, ch. 88-190; s. 2, ch. 90-132; s. 1, ch. 95-244; s. 14, ch. 97-287.

199.1055  Contaminated site rehabilitation tax credit.--

(1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--

(a)  A credit in the amount of 35 percent of the costs of voluntary cleanup activity that is integral to site rehabilitation at the following sites is available against any tax due for a taxable year under s. 199.032, less any credit allowed by former s. 220.68 for that year:

1.  A drycleaning-solvent-contaminated site eligible for state-funded site rehabilitation under s. 376.3078(3);

2.  A drycleaning-solvent-contaminated site at which cleanup is undertaken by the real property owner pursuant to s. 376.3078(11), if the real property owner is not also, and has never been, the owner or operator of the drycleaning facility where the contamination exists; or

3.  A brownfield site in a designated brownfield area under s. 376.80.

(b)  A tax credit applicant, or multiple tax credit applicants working jointly to clean up a single site, may not be granted more than $250,000 per year in tax credits for each site voluntarily rehabilitated. Multiple tax credit applicants shall be granted tax credits in the same proportion as their contribution to payment of cleanup costs. Subject to the same conditions and limitations as provided in this section, a municipality, county, or other tax credit applicant which voluntarily rehabilitates a site may receive not more than $250,000 per year in tax credits which it can subsequently transfer subject to the provisions in paragraph (g).

(c)  If the credit granted under this section is not fully used in any one year because of insufficient tax liability on the part of the tax credit applicant, the unused amount may be carried forward for a period not to exceed 5 years. Five years after the date a credit is granted under this section, such credit expires and may not be used. However, if during the 5-year period the credit is transferred, in whole or in part, pursuant to paragraph (g), each transferee has 5 years after the date of transfer to use its credit.

(d)  A taxpayer that receives a credit under s. 220.1845 is ineligible to receive credit under this section in a given tax year.

(e)  A tax credit applicant that receives state-funded site rehabilitation pursuant to s. 376.3078(3) for rehabilitation of a drycleaning-solvent-contaminated site is ineligible to receive credit under this section for costs incurred by the tax credit applicant in conjunction with the rehabilitation of that site during the same time period that state-administered site rehabilitation was underway.

(f)  The total amount of the tax credits which may be granted under this section and s. 220.1845 is $2 million annually.

(g)1.  Tax credits that may be available under this section to an entity eligible under s. 376.30781 may be transferred after a merger or acquisition to the surviving or acquiring entity and used in the same manner with the same limitations.

2.  The entity or its surviving or acquiring entity as described in subparagraph 1., may transfer any unused credit in whole or in units of no less than 25 percent of the remaining credit. The entity acquiring such credit may use it in the same manner and with the same limitation as described in this section. Such transferred credits may not be transferred again although they may succeed to a surviving or acquiring entity subject to the same conditions and limitations as described in this section.

3.  In the event the credit provided for under this section is reduced either as a result of a determination by the Department of Environmental Protection or an examination or audit by the Department of Revenue, such tax deficiency shall be recovered from the first entity, or the surviving or acquiring entity, to have claimed such credit up to the amount of credit taken. Any subsequent deficiencies shall be assessed against any entity acquiring and claiming such credit, or in the case of multiple succeeding entities in the order of credit succession.

(h)  In order to encourage completion of site rehabilitation at contaminated sites being voluntarily cleaned up and eligible for a tax credit under this section, the tax credit applicant may claim an additional 10 percent of the total cleanup costs, not to exceed $50,000, in the final year of cleanup as evidenced by the Department of Environmental Protection issuing a "No Further Action" order for that site.

(2)  FILING REQUIREMENTS.--Any taxpayer that wishes to obtain credit under this section must submit with its return a tax credit certificate approving partial tax credits issued by the Department of Environmental Protection under s. 376.30781.

(3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT FORFEITURE.--

(a)  The Department of Revenue may adopt rules to prescribe any necessary forms required to claim a tax credit under this section and to provide the administrative guidelines and procedures required to administer this section.

(b)  In addition to its existing audit and investigation authority relating to chapters 199 and 220, the Department of Revenue may perform any additional financial and technical audits and investigations, including examining the accounts, books, or records of the tax credit applicant, which are necessary to verify the site rehabilitation costs included in a tax credit return and to ensure compliance with this section. The Department of Environmental Protection shall provide technical assistance, when requested by the Department of Revenue, on any technical audits performed under this section.

(c)  It is grounds for forfeiture of previously claimed and received tax credits if the Department of Revenue determines, as a result of either an audit or information received from the Department of Environmental Protection, that a taxpayer received tax credits under this section to which the taxpayer was not entitled. In the case of fraud, the taxpayer shall be prohibited from claiming any future tax credits under this section or s. 220.1845.

1.  The taxpayer is responsible for returning forfeited tax credits to the Department of Revenue, and such funds shall be paid into the General Revenue Fund of the state.

2.  The taxpayer shall file with the Department of Revenue an amended tax return or such other report as the Department of Revenue prescribes by rule and shall pay any required tax within 60 days after the taxpayer receives notification from the Department of Environmental Protection pursuant to s. 376.30781 that previously approved tax credits have been revoked or modified, if uncontested, or within 60 days after a final order is issued following proceedings involving a contested revocation or modification order.

3.  A notice of deficiency may be issued by the Department of Revenue at any time within 5 years after the date the taxpayer receives notification from the Department of Environmental Protection pursuant to s. 376.30781 that previously approved tax credits have been revoked or modified. If a taxpayer fails to notify the Department of Revenue of any change in its tax credit claimed, a notice of deficiency may be issued at any time. In either case, the amount of any proposed assessment set forth in such notice of deficiency shall be limited to the amount of any deficiency resulting under this section from the recomputation of the taxpayer's tax for the taxable year.

4.  Any taxpayer that fails to report and timely pay any tax due as a result of the forfeiture of its tax credit is in violation of this section and is subject to applicable penalty and interest.

History.--s. 1, ch. 98-189; s. 28, ch. 2002-1; s. 2, ch. 2003-173.

199.106  Credit for taxes imposed by other states.--

(1)  For intangible personal property that has been deemed to have a taxable situs in this state solely pursuant to s. 199.175(2) or any similar predecessor statute, a credit against the tax imposed by s. 199.032 is allowed to a taxpayer in an amount equal to a like tax lawfully imposed and paid by that taxpayer on the same property in another state, territory of the United States, or the District of Columbia. For purposes of this subsection, the term "like tax" means an ad valorem tax on intangible personal property that is also subject to tax under s. 199.032. The credit may not exceed the tax imposed on the property under s. 199.032. Proof of entitlement to such a credit must be made pursuant to rules and forms adopted by the department.

(2)  For intangible personal property that has a taxable situs in this state under s. 199.175(1) or any similar predecessor statute, a credit against the tax imposed by s. 199.032 is allowed to a taxpayer in an amount equal to a like tax lawfully imposed and paid by that taxpayer on the same property in another state, territory of the United States, or the District of Columbia when the other taxing authority is also claiming situs under provisions similar or identical to those in s. 199.175(1) or any similar predecessor statute. For purposes of this subsection, "like tax" means an ad valorem tax on intangible personal property which is also subject to tax under s. 199.032. The credit may not exceed the tax imposed on the property under s. 199.032. Proof of entitlement to such a credit must be made pursuant to rules and forms adopted by the department.

(3)  The credits provided by this section apply retroactively. However, notwithstanding the retroactivity of these credit provisions, this section does not reopen a closed period of nonclaim under s. 215.26 or any other statute or extend the period of nonclaim under s. 215.26 or any other statute.

History.--s. 4, ch. 92-319; s. 10, ch. 99-208.

199.133  Levy of nonrecurring tax; relationship to annual tax.

199.135  Due date and payment of nonrecurring tax.

199.143  Future advances.

199.145  Corrective mortgages; assignments; assumptions; refinancing.

199.155  Valuation.

199.175  Taxable situs.

199.183  Taxpayers exempt from annual and nonrecurring taxes.

199.185  Property exempted from annual and nonrecurring taxes.

199.1851  Emergency rulemaking for ch. 2001-371.

199.133  Levy of nonrecurring tax; relationship to annual tax.--

(1)  A one-time nonrecurring tax of 2 mills is hereby imposed on each dollar of the just valuation of all notes, bonds, and other obligations for payment of money which are secured by mortgage, deed of trust, or other lien upon real property situated in this state. This tax shall be assessed and collected as provided by this chapter.

(2)  The nonrecurring tax shall apply to a note, bond, or other obligation for payment of money only to the extent it is secured by mortgage, deed of trust, or other lien upon real property situated in this state. Where a note, bond, or other obligation is secured by personal property or by real property situated outside this state, as well as by mortgage, deed of trust, or other lien upon real property situated in this state, then the nonrecurring tax shall apply to that portion of the note, bond, or other obligation which bears the same ratio to the entire principal balance of the note, bond, or other obligation as the value of the real property situated in this state bears to the value of all of the security; however, if the security is solely made up of personal property and real property situated in this state, the taxpayer may elect to apportion the taxes based upon the value of the collateral, if any, to which the taxpayer by law or contract must look first for collection. In no event shall the portion of the note, bond, or other obligation which is subject to the nonrecurring tax exceed in value the value of the real property situated in this state which is the security. The portion of a note, bond, or other obligation which is not subject to the nonrecurring tax shall be subject to the annual tax unless otherwise exempt.

History.--s. 10, ch. 85-342.

199.135  Due date and payment of nonrecurring tax.--The nonrecurring tax imposed on notes, bonds, and other obligations for payment of money secured by a mortgage, deed of trust, or other lien evidenced by a written instrument presented for recordation shall be due and payable when the instrument is presented for recordation. If there is no written instrument or if it is not so presented within 30 days following creation of the obligation, then the tax shall be due and payable within 30 days following creation of the obligation.

(1)  Where an instrument giving rise to the mortgage, deed of trust, or other lien is recorded, the person recording it shall pay the tax to the clerk of the circuit court to whom the instrument is presented for recording. The clerk shall note the amount received upon the instrument. If the instrument is being recorded in more than one county, the tax may be paid to the clerk of circuit court in any such county, and, upon request, such clerk shall notify the clerks of circuit court in the other counties as to such payment.

(2)  Where no instrument is recorded, the tax shall be paid to the department as provided by rule.

(3)  No later than 7 working days after the end of each week, each clerk shall transmit to the department all nonrecurring intangible taxes collected during the preceding week, together with a report certifying the amount of tax collected with respect to all instruments upon which the tax was paid. Each clerk shall be compensated 0.5 percent of any tax he or she collects under s. 199.133 as collection costs in the form of a deduction from the amount of tax due and remitted by the clerk, and the department shall allow the deduction to the clerk remitting the tax in the manner as provided by the department.

(4)  With respect to the nonrecurring tax imposed pursuant to s. 199.133, the taxpayer shall be solely liable for payment of the tax but may pass on the amount of such tax to the borrower or mortgagor.

(5)(a)  In recognition of the special escrow requirements that apply to sales of timeshare interests in timeshare plans pursuant to s. 721.08, tax on notes or other obligations secured by a mortgage, deed of trust, or other lien upon real property situated in this state executed in conjunction with the sale by a developer of a timeshare interest in a timeshare plan is due and payable on the earlier of the date on which:

1.  The mortgage, deed of trust, or other lien is recorded; or

2.  All of the conditions precedent to the release of the purchaser's escrowed funds or other property pursuant to s. 721.08(2)(c) have been met, regardless of whether the developer has posted an alternative assurance. Tax due under this subparagraph is due and payable on or before the 20th day of the month following the month in which these conditions were met.

(b)1.  If tax has been paid to the department under subparagraph (a)2., and the note, other written obligation, mortgage, deed of trust, or other lien with respect to which the tax was paid is subsequently recorded, a notation reflecting the prior payment of the tax must be made upon the mortgage or other lien.

2.  Notwithstanding paragraph (a), if funds are designated on a closing statement as tax collected from the purchaser, but the mortgage, deed of trust, or other lien with respect to which the tax was collected has not been recorded or filed in this state, the tax must be paid to the department on or before the 20th day of the month following the month in which the funds are available for release from escrow, unless the funds have been refunded to the purchaser.

(c)  The department may adopt rules to administer the method for reporting tax due under this subsection.

History.--s. 11, ch. 85-342; s. 4, ch. 87-102; s. 68, ch. 94-353; s. 1480, ch. 95-147; s. 3, ch. 2005-280.

199.143  Future advances.--

(1)  Except as provided in subsection (3), if the mortgage, deed of trust, or other lien is recorded or executed after December 31, 1985, and secures future advances, as provided in s. 697.04, the nonrecurring tax shall initially be paid on the initial obligation secured, excluding future advances. Each time a future advance is made, additional nonrecurring tax shall be paid on the amount of the advance. However, any increase in the amount of original indebtedness caused by interest accruing under an adjustable interest rate obligation having an initial interest rate adjustment interval of not less than 6 months shall be taxable as a future advance only to the extent such increase is a computable sum certain when the original indebtedness is incurred.

(2)  The trustee, if a deed of trust, or the owner of the obligation, if a mortgage or other lien, making the advance shall pay the additional tax to the clerk to whom the initial tax was paid. The clerk shall note the amount received upon the instrument, if one has been recorded, or shall otherwise give a receipt.

(3)  If the mortgage, deed of trust, or other lien secures a line of credit, the nonrecurring tax shall be paid as provided in s. 199.135 on the maximum amount of the line of credit, except as limited by s. 199.133, and no further nonrecurring tax shall be due on any borrowing under the line of credit.

History.--s. 12, ch. 85-342; s. 50, ch. 86-152; s. 1, ch. 97-123; s. 1, ch. 99-274.

199.145  Corrective mortgages; assignments; assumptions; refinancing.--

(1)  Any mortgage, deed of trust, or other lien given to replace a defective mortgage, deed of trust, or other lien, covering the identical real property as the original and securing the identical original note or obligation, may be recorded without payment of additional nonrecurring tax upon proof of payment of the tax upon the original recording. The clerk shall note the original payment on the new instrument.

(2)  No additional nonrecurring tax shall be due upon the assignment by the obligee of a note, bond, or other obligation for the payment of money upon which a nonrecurring tax has previously been paid.

(3)  No additional nonrecurring tax shall be due upon the assumption of a note, bond, or other obligation for the payment of money if a nonrecurring tax has previously been paid and the amount of the indebtedness remains the same, whether or not the original obligor is released from liability.

(4)  Where a note, bond, or other obligation upon which a nonrecurring tax has previously been paid is refinanced with the original obligee or its assignee:

(a)  No additional nonrecurring tax is due if the principal balance of the new obligation is less than or equal to the unpaid principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing.

(b)  Additional nonrecurring tax is due if the principal balance of the new obligation exceeds the principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing. If the original obligor is not liable to the obligee under the new obligation, the additional nonrecurring tax shall be computed on the entire principal balance of the new obligation; otherwise, the additional nonrecurring tax shall be computed on the excess of the principal balance of the new obligation over the principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing.

History.--s. 13, ch. 85-342.

199.155  Valuation.--Subject to the provisions of s. 199.133(2), all notes, bonds, and other obligations for payment of money subject to the nonrecurring tax shall be valued at the principal amount of indebtedness evidenced by such obligation.

History.--s. 14, ch. 85-342.

199.175  Taxable situs.--For purposes of the annual tax imposed under this chapter:

(1)  Intangible personal property shall have a taxable situs in this state when it is owned, managed, or controlled by any person domiciled in this state on January 1 of the tax year. Such intangibles shall be subject to annual taxation under this chapter, unless the person who owns, manages, or controls them is specifically exempt or unless the property is specifically exempt. This provision shall apply regardless of where the evidence of the intangible property is kept; where the intangible is created, approved, or paid; or where business may be conducted from which the intangible arises. The fact that a Florida corporation owns the stock of an out-of-state corporation and manages and controls such corporation from a location in this state shall not operate to give a taxable situs in this state to the intangibles owned by the out-of-state corporation, which intangibles arise out of business transacted outside this state.

¹(a)  For the purposes of this chapter, "any person domiciled in this state" means:

1.  Any natural person who is a legal resident of this state;

2.  Any business, business trust as described in chapter 609, company, corporation, partnership, or other artificial entity organized or created under the law of this state, except a trust; or

3.  Any person, including a business trust, who has established a commercial domicile in this state.

(b)  A business or other artificial entity acquires its commercial domicile in this state when it maintains its chief or principal office in this state where executive or management functions are performed or where the course of business operations is determined.

(c)  Notwithstanding the provisions of this subsection, intangibles that are credit card receivables or charge card receivables or related lines of credit or loans that would otherwise be deemed to have taxable situs in this state solely because they are owned, managed, or controlled by a bank or savings association as defined in s. 220.62, or an affiliate or subsidiary thereof, which is domiciled in this state shall be treated as having a taxable situs in this state only when the debt represented by the intangible is owed by a customer who is domiciled in this state. As used in this paragraph, the terms "credit card receivables" and "charge card receivables" do not include trade or service receivables as defined in s. 864 of the Internal Revenue Code of 1986, as amended.

(2)  Intangible personal property shall have a taxable situs in this state when it is deemed to have a business situs in this state and it is owned, managed, or controlled by a person transacting business in this state, even though the owner may claim a domicile elsewhere. This provision shall apply regardless of where the evidence of the intangible is kept or where the intangible is created, approved, or paid.

(a)  Intangibles shall be deemed to have a Florida business situs when they receive the benefit and protection of Florida laws and courts and they are derived from, arise out of, or are issued in connection with the business transacted in this state with a customer in this state. For purposes of this paragraph:

1.  Business is transacted in this state when any occupation, profession, or commercial activity, including financing, leasing, selling, or servicing activities, is regularly conducted with customers in this state from an office, plant, home, or any other business location in this state.

2.  Business is transacted in this state when any occupation, profession, or commercial activity, including financing, leasing, selling, or servicing activities, is regularly conducted with customers in this state by or through agents, employees, or representatives of any kind in this state, whether or not such persons are vested with discretionary authority.

(b)  Notwithstanding the provisions of this subsection:

1.a.  Intangibles that are credit card or charge card receivables or related lines of credit or loans shall be deemed to have business situs in this state only when the debt represented by such intangibles is owed by a customer who is domiciled in this state.

b.  The performance of ministerial functions relating to, or the processing of, credit card or charge card receivables in this state for the owner of such receivables is not sufficient to support a finding that the owner is transacting business in this state.

c.  The term "credit card or charge card receivables" does not include trade or service receivables as defined in s. 864 of the Internal Revenue Code of 1986, as amended.

2.  An intangible owned by a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company, as those terms are defined in the United States Internal Revenue Code of 1986, as amended, shall not be deemed to have a taxable situs in this state unless such entity has its legal or commercial domicile in this state.

3.  The ownership of any interest in a participation or syndication loan or pool of loans, notes, or receivables shall not be sufficient to support a finding that the owner of such interest is transacting business in this state. For the purposes of this subparagraph, a participation or syndication loan is a loan in which more than one lender is a creditor to a common borrower, and a participation or syndication interest in a pool of loans, notes, or receivables is an interest acquired from the originator or initial creditor with respect to the loans, notes, or receivables constituting the pool.

(c)  It is the intent of this subsection that no nonresident may transact business in this state without paying the same tax which the state imposes on residents transacting the same business.

History.--s. 15, ch. 85-342; s. 40, ch. 87-224; s. 8, ch. 89-356; ss. 4, 5, ch. 98-132; s. 5, ch. 2000-173.

¹Note.--The amendment to paragraph (1)(a) by s. 5, ch. 2000-173, failed to incorporate the amendment by s. 5, ch. 98-132. Absent affirmative evidence that the Legislature intended to omit those changes, they are included here pending further clarification by the Legislature. As amended by s. 5, ch. 2000-173, only, paragraph (1)(a) reads:

(a)  For the purposes of this chapter, "any person domiciled in this state" means:

1.  Any natural person who is a legal resident of this state;

2.  Any bank or financial institution, business, business trust as described in chapter 609, company, corporation, insurance company, partnership, or other artificial entity organized or created under the law of this state, except a trust; or

3.  Any person, including a business trust, who has established a commercial domicile in this state.

199.183  Taxpayers exempt from annual and nonrecurring taxes.--

(1)  Intangible personal property owned by this state or any of its political subdivisions or municipalities shall be exempt from taxation under this chapter. This exemption does not apply to:

(a)  Any leasehold or other interest that is described in s. 199.023(1)(d).

(b)  Property related to the provision of two-way telecommunications services to the public for hire by the use of a telecommunications facility, as defined in s. 364.02(15), and for which a certificate is required under chapter 364, when the service is provided by any county, municipality, or other political subdivision of the state. Any immunity of any political subdivision of the state or other entity of local government from taxation of the property used to provide telecommunication services that is taxed as a result of this paragraph is hereby waived. However, intangible personal property related to the provision of telecommunications services provided by the operator of a public-use airport, as defined in s. 332.004, for the operator's provision of telecommunications services for the airport or its tenants, concessionaires, or licensees, and intangible personal property related to the provision of telecommunications services provided by a public hospital, are exempt from taxation under this chapter.

(2)  Intangible personal property owned by nonprofit religious, nonprofit educational, or nonprofit charitable institutions shall be exempt from taxation under this chapter. This exemption shall be strictly defined, limited, and applied in each category as follows:

(a)  "Religious institutions" means churches and ecclesiastical or denominational organizations having established physical places for worship in this state at which nonprofit religious services and activities are regularly conducted, as well as church cemeteries.

(b)  "Educational institutions" means only:

1.  Public or nonprofit private schools, colleges, or universities conducting regular classes and courses of study required for accreditation by, or membership in, the Southern Association of Colleges and Schools, Department of Education, or the Florida Council of Independent Schools; or

2.  Nonprofit libraries, art galleries, and museums open to the public.

(c)  "Charitable institutions" means only:

1.  Nonprofit corporations operating physical facilities in this state at which are provided charitable services, a reasonable percentage of which shall be without cost to those unable to pay; or

2.  Those institutions qualified as charitable under s. 501(c)(3) of the United States Internal Revenue Code of 1954.

Intangible personal property shall not be deemed to be owned by such exempt institutions if it is held in a trust of any kind under which the institution has no present interest in the trust principal except the right to compel the performance of the trust agreement.

(3)  Every national bank having its principal place of business in another state, but operating a credit card credit application processing, customer service, or collection operation in this state, that is not considered a bank under the provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying the tax imposed by this chapter on credit card receivables owed to the bank by credit card holders domiciled outside this state.

(4)  Intangible personal property that is owned, managed, or controlled by a trustee of a trust is exempt from annual tax under this chapter. This exemption does not exempt from annual tax a resident of this state who has a taxable beneficial interest, as defined in s. 199.023, in a trust.

History.--s. 16, ch. 85-342; s. 48, ch. 91-45; s. 2, ch. 96-283; s. 4, ch. 97-197; s. 6, ch. 2000-173; s. 21, ch. 2003-32; s. 21, ch. 2005-132.

199.185  Property exempted from annual and nonrecurring taxes.--

(1)  The following intangible personal property shall be exempt from the annual and nonrecurring taxes imposed by this chapter:

(a)  Money.

(b)  Franchises.

(c)  Any interest as a partner in a partnership, either general or limited, other than any interest as a limited partner in a limited partnership registered with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended.

(d)  Notes, bonds, and other obligations issued by the State of Florida or its municipalities, counties, and other taxing districts, or by the United States Government and its agencies.

(e)  Intangible personal property held in trust pursuant to any stock bonus, pension, or profit-sharing plan or any individual retirement account which is qualified under s. 530, s. 401, s. 408, or s. 408A of the United States Internal Revenue Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended.

(f)  Intangible personal property held under a retirement plan of a Florida-based corporation exempt from federal income tax under s. 501(c)(6) of the United States Internal Revenue Code, 26 U.S.C., if the primary purpose of the corporation is to support the promotion of professional sports and the retirement plan is either a qualified plan under s. 457 of the United States Internal Revenue Code or the contributions to the plan, pursuant to a ruling by the United States Internal Revenue Service, are not taxable to plan participants until actual receipt or withdrawal by the participant.

(g)  Notes and other obligations, except bonds, to the extent that such notes and obligations are secured by mortgage, deed of trust, or other lien upon real property situated outside the state.

(h)  The assets of a corporation registered under the Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as amended.

(i)  All intangible personal property issued in or arising out of any international banking transaction and owned by a banking organization.

(j)  Units of a unit investment trust and shares or units of, or other undivided interest in, a business trust organized under an agreement, indenture, or declaration of trust and registered under the Investment Company Act of 1940, as amended, shall be exempt if at least 90 percent of the net asset value of the portfolio of assets corresponding to such shares, units, or undivided interests is invested in assets that are exempt from the tax imposed by s. 199.032.

(k)  Interests in real estate securitizations, including, but not limited to, real estate mortgage investment conduits (REMIC) and financial asset securitization trusts (FASITS), which are directly or indirectly secured by or payable from notes and obligations that are in turn secured solely by a mortgage, deed of trust, or other lien upon real property situated in or outside the state, including, but not limited to, mortgage pools, participations, and derivatives.

(l)  All accounts receivable arising or acquired in the ordinary course of a trade or business which are owned, controlled, or managed by a taxpayer. This exemption does not apply to accounts receivable that arise outside the taxpayer's ordinary course of trade or business. For the purposes of this chapter, the term "accounts receivable" means a business debt that is owed by another to the taxpayer or the taxpayer's assignee in the ordinary course of trade or business and is not supported by negotiable instruments. Accounts receivable include, but are not limited to, credit card receivables, charge card receivables, credit receivables, margin receivables, inventory or other floor plan financing, lease payments past due, conditional sales contracts, retail installment sales agreements, financing lease contracts, and a claim against a debtor usually arising from sales or services rendered and which is not necessarily due or past due. The examples specified in this paragraph shall be deemed not to be supported by negotiable instruments. The term "negotiable instrument" means a written document that is legally capable of being transferred by indorsement or delivery. The term "indorsement" means the act of a payee or holder in writing his or her name on the back of an instrument without further qualifying words other than "pay to the order of" or "pay to" whereby the property is assigned and transferred to another.

(m)  Stock options granted to employees by their employer pursuant to an incentive plan, if the employees cannot transfer, sell, or mortgage the options. Stock purchased by an employee from an employer pursuant to an incentive plan shall be treated as a nontaxable stock option if part of the purchase price of the stock is nonrecourse debt secured by the stock and the stock cannot be sold, transferred, or assigned by the employee until the nonrecourse debt is discharged. Such stock becomes taxable stock when it can be sold, transferred, or assigned by the employee.

(n)1.  A leasehold estate in governmental property where the lessee is required to furnish space on the leasehold estate for public use by governmental agencies at no charge to the governmental agencies.

2.  The provisions of this exemption shall apply retroactively. However, notwithstanding the retroactivity of the exemption, it does not reopen a closed period of nonclaim under s. 215.26 or any other statute or extend the period of nonclaim under s. 215.26 or any other statute.

(2)  Every natural person is entitled each year to an exemption of the first $250,000 of the value of property otherwise subject to the annual tax. A husband and wife filing jointly shall have an exemption of $500,000. Every taxpayer that is not a natural person is entitled each year to an exemption of the first $250,000 of the value of property otherwise subject to the tax. Agents and fiduciaries, other than guardians and custodians under a gifts-to-minors act, filing as such may not claim this exemption on behalf of their principals or beneficiaries; however, if the principal or beneficiary returns the property held by the agent or fiduciary and is a natural person, the principal or beneficiary may claim the exemption. No taxpayer shall be entitled to more than one exemption under this subsection. This exemption shall not apply to that intangible personal property described in s. 199.023(1)(d).

(3)  Every natural person who is a widow or widower, or who is blind, or who is totally and permanently disabled, is entitled each year to an additional exemption of $500 of property otherwise subject to the annual or nonrecurring tax. This exemption is afforded by s. 3, Art. VII of the State Constitution and is available only to the extent not used against real property or tangible personal property taxes.

(4)  Charitable trusts, 95 percent of the income of which is paid to organizations exempt from federal income tax pursuant to s. 501(c)3 of the Internal Revenue Code, shall be exempt from the tax imposed in s. 199.032.

(5)  Those organizations defined in s. 220.62(1), (2), (3), or (4) are exempt from the tax imposed by s. 199.032.

(6)  Every liquor distributor that is domiciled in this state, that is authorized to do business under the Beverage Law, and that has paid the license taxes required by s. 565.03(2) is exempt from paying tax on accounts receivable owned by the taxpayer which are derived from, arise out of, or are issued in connection with a sale of alcoholic beverages transacted in another state with a customer in another state.

(7)  A national bank that has its principal place of business in another state, processes credit card credit applications in this state or performs customer service or collection operations in this state, and is not a bank under 12 U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit card receivables owed to the bank by a credit card holder domiciled outside this state.

(8)  Every insurer, as defined in s. 624.03, whether the insurer is authorized or unauthorized as defined in s. 624.09, is exempt from the tax imposed by s. 199.032.

History.--s. 17, ch. 85-342; s. 41, ch. 87-224; s. 7, ch. 87-316; s. 4, ch. 90-132; s. 2, ch. 92-319; s. 4, ch. 94-353; s. 1, ch. 96-283; s. 13, ch. 96-320; s. 1, ch. 97-191; s. 6, ch. 98-132; s. 5, ch. 99-242; ss. 2, 3, ch. 99-274; s. 7, ch. 2000-173; ss. 5, 11, ch. 2000-312; s. 1, ch. 2001-225; ss. 1, 2, ch. 2001-371; s. 1, ch. 2005-96.

199.1851  Emergency rulemaking for ch. 2001-371.--The Executive Director of the Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules under ss. 120.536(1) and 120.54(4) to implement this act. Notwithstanding any other provision of law, such emergency rules shall remain effective for 6 months after the date of adoption and may be renewed during the pendency of procedures to adopt rules addressing the subject of the emergency rules.

History.--s. 3, ch. 2001-371.

199.202  Administration of law; rules.

199.212  All state agencies to cooperate in administration of law.

199.218  Books and records.

199.232  Powers of department.

199.262  Tax liens and garnishment.

199.272  Suits for violation of this chapter; jurisdiction and service.

199.282  Penalties for violation of this chapter.

199.292  Disposition of intangible personal property taxes.

199.303  Declaration of legislative intent.

199.202  Administration of law; rules.--The department shall administer and enforce the assessment and collection of the taxes, interest, and penalties imposed by this chapter. It may by rule prescribe the form and content of all returns and reports. It has authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to enforce the provisions of this chapter.

History.--s. 1, ch. 71-134; s. 18, ch. 85-342; s. 15, ch. 98-200.

199.212  All state agencies to cooperate in administration of law.--The department may call on any state, county, or municipal agency, department, bureau, or board for any information which may, in the department's judgment, assist it in administering this chapter. Such agency, department, bureau, or board shall promptly furnish such information.

History.--s. 1, ch. 71-134; s. 19, ch. 85-342.

199.218  Books and records.--

(1)  Each taxpayer shall retain all books and other records necessary to identify the taxpayer's intangible personal property and to determine any tax due under this chapter, as well as all books and other records otherwise required by rule of the department with respect to any such tax, until the department's power to make an assessment with respect to such tax has terminated under s. 95.091(3).

(2)  Each broker subject to the provisions of s. 199.062 shall preserve all books and other records relating to the information reported under s. 199.062 or otherwise required by rule of the department for a period of 3 years from the due date of the report.

History.--s. 20, ch. 85-342; s. 52, ch. 87-6; s. 6, ch. 2002-218.

199.232  Powers of department.--

(1)(a)  The department may audit the books and records of any person to determine whether an annual tax or a nonrecurring tax has been properly paid.

(b)  An audit is commenced by service in person or by certified mail of a written notice to the taxpayer of intent to audit.

(2)  The department may inspect all records of the taxpayer which may be relevant to the audit, and the department may compel the testimony of the taxpayer under oath or affirmation. The department may also issue subpoenas to compel the testimony of third parties under oath or affirmation and the production of records and other evidence held by third parties, including corporations and brokers. Any duly authorized representative of the department may administer an oath or affirmation. If the taxpayer fails to give testimony or to produce any requested records, or if a third party fails to comply with a subpoena, any circuit court having jurisdiction over the taxpayer or third party may, upon application of the department, issue such orders as are necessary to secure compliance.

(3)  With or without an audit, the department may assess any tax deficiency resulting from nonpayment or underpayment of the tax, as well as any applicable interest and penalties. The department shall assess on the basis of the best information available to it, including estimates based on the best information available to it if the taxpayer fails to permit inspection of the taxpayer's records, fails to file an annual return, files a grossly incorrect return, or files a false and fraudulent return.

(4)  Following an assessment, the department shall collect the assessed amount from the taxpayer. The assessment is considered prima facie correct, and the taxpayer has the burden of showing any error in the assessment.

(5)  The department shall credit or refund any overpayment of tax that is revealed on an audit or for which a claim for refund is filed. A claim for refund may be filed within the period specified in s. 215.26(2). It must be filed by the taxpayer, or the taxpayer's heirs, personal representatives, successors, or assigns, and must include the information required by the department.

(6)  In its discretion, the department may, for reasonable cause, grant extensions of time not to exceed 3 months for paying any tax due, or for filing any return or report required, under this chapter.

(7)(a)  If it appears, upon examination of an intangible tax return made under this chapter or upon proof submitted to the department by the taxpayer, that an amount of intangible personal property tax has been paid in excess of the amount due, the department shall refund the amount of the overpayment to the taxpayer by a warrant of the Chief Financial Officer. The department shall refund the overpayment without regard to whether the taxpayer has filed a written claim for a refund; however, the department may request that the taxpayer file a statement affirming that the taxpayer made the overpayment.

(b)  Notwithstanding paragraph (a), a refund of the intangible personal property tax may not be made nor is a taxpayer entitled to bring an action for a refund of the intangible personal property tax after the period specified in s. 215.26(2) has elapsed.

(c)  If a refund issued by the department under this section is found to exceed the amount of refund legally due to the taxpayer, the provisions of s. 199.282 concerning penalties and interest do not apply if the taxpayer reimburses the department for any overpayment within 60 days after the taxpayer is notified that the overpayment was made.

History.--s. 1, ch. 71-134; s. 22, ch. 85-342; s. 5, ch. 86-152; s. 51, ch. 87-6; s. 7, ch. 94-314; ss. 5, 47, ch. 94-353; s. 177, ch. 2003-261.

199.262  Tax liens and garnishment.--

(1)  When any tax imposed by this chapter becomes delinquent, or is otherwise in jeopardy, the department shall issue a warrant for the full amount of tax due or estimated to be due, together with interest, penalties, and cost of collection. The warrant shall be directed to all and singular the sheriffs of the state. It shall be recorded with the clerk of the circuit court in the county where the delinquent taxpayer's property is located. Upon recording, the amount of the warrant shall become a lien upon the taxpayer's real and personal property in such county in the same manner as a judgment duly docketed and recorded, and the clerk of the circuit court shall issue execution on the warrant in the same manner as on a judgment. The sheriff shall then execute the warrant in the same manner prescribed by law for executions upon judgments, and he or she shall be entitled to the same fees for his or her services. Upon payment of the warrant, the department shall satisfy the lien of record within 30 days; and any interested person may thereafter compel the department to satisfy the lien of record. If there is jeopardy to the revenue and jeopardy is asserted in or with an assessment, the department shall proceed in the manner specified for jeopardy assessments in s. 213.732.

(2)  Whenever the department deems it necessary, the department may issue an alias tax execution. Each alias tax execution shall be so designated on its face. Each alias tax execution shall have the same force and effect as the original.

(3)  Tax executions may be levied upon any third party having any assets of the delinquent taxpayer in its possession or control or that is indebted to the delinquent taxpayer. When any tax execution is so levied, it shall have the force and effect of a writ of garnishment. The third party shall pay the debt or deliver the assets of the delinquent taxpayer to the department. The receipt of the department shall be complete discharge to the third party to the extent of the debt paid or assets turned over.

(4)  Any employee of the department may be designated in writing by the executive director of the department to make and sign assessments, tax warrants, assignments of tax warrants, and satisfactions of tax warrants.

(5)  Whenever any tax execution becomes void, the department may cancel it of record and shall do so upon the request of any interested person.

History.--s. 1, ch. 71-134; s. 1, ch. 78-43; s. 24, ch. 85-342; s. 9, ch. 92-315; s. 1046, ch. 95-147.

199.272  Suits for violation of this chapter; jurisdiction and service.--

(1)  All suits brought by the department against any person for any violation of this chapter shall be brought in the circuit courts of this state.

(2)  Every person having his or her principal place of business outside of this state but subject to the provisions of this chapter shall designate with the department an agent for service within the state for the purpose of enforcing this chapter. If such person has not designated an agent, the department may deem the Department of State or any agent or employee of the person within the state as agent for service.

History.--s. 1, ch. 71-134; s. 25, ch. 85-342; s. 1047, ch. 95-147.

199.282  Penalties for violation of this chapter.--

(1)  Any person willfully violating or failing to comply with any of the provisions of this chapter shall be guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(2)  If any annual or nonrecurring tax is not paid by the statutory due date, then despite any extension granted under s. 199.232(6), interest shall run on the unpaid balance from such due date until paid at the rate of 12 percent per year.

(3)(a)  If any annual or nonrecurring tax is not paid by the due date, a delinquency penalty shall be charged. The delinquency penalty shall be 10 percent of the delinquent tax for each calendar month or portion thereof from the due date until paid, up to a limit of 50 percent of the total tax not timely paid.

(b)  If any annual tax return required by this chapter is not filed by the due date, a penalty of 10 percent of the tax due with the return shall be charged for each calendar month or portion thereof during which the return remains unfiled, up to a limit of 50 percent of the total tax due.

For any penalty assessed under this subsection, the combined total for all penalties assessed under paragraphs (a) and (b) shall not exceed 10 percent per calendar month, up to a limit of 50 percent of the total tax due.

(4)  If an annual tax return is filed and property is either omitted from it or undervalued, then a specific penalty shall be charged. The specific penalty shall be 10 percent of the tax attributable to each omitted item or to each undervaluation. No delinquency or late filing penalty shall be charged with respect to any undervaluation.

(5)  No mortgage, deed of trust, or other lien upon real property situated in this state shall be enforceable in any Florida court, nor shall any written evidence of such mortgage, deed of trust, or other lien be recorded in any public record of the state, until the nonrecurring tax imposed by this chapter, including any taxes due on future advances, has been paid and the clerk of circuit court collecting the tax has noted its payment on the instrument or given other receipt for it. However, failure to pay the correct amount of tax or failure of the clerk to note payment of the tax on the instrument shall not affect the constructive notice given by recording of the instrument.

(6)  Late reporting penalties shall be imposed as follows:

(a)  A penalty of $100 upon any corporation that does not timely file a written notice required under s. 199.057(2)(c).

(b)  An initial penalty of $10 per customer position statement, plus an additional penalty of the greater of 1 percent of the initial penalty or $50 for each month or portion of a month, from the date due until filing is made, upon any security dealer or investment adviser who does not timely file or fails to file the statements required by s. 199.062(1). The submission of a position statement that does not comply with the department's specifications and instructions or the submission of an inaccurate position statement is not a timely filing. The department shall notify any security dealer or investment adviser who fails to timely file the required statements. The minimum penalty imposed upon a security dealer or investment adviser under this paragraph is $100.

(7)  Interest and penalties attributable to any tax shall be deemed assessed when the tax is assessed. Interest and penalties shall be assessed and collected by the department as provided in this chapter. The department may settle or compromise tax, interest, or penalties under the provisions of s. 213.21.

(8)  Any person who fails or refuses to file an annual return, or who fails or refuses to make records available for inspection, when requested to do so by the department is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.

(9)  Any officer or director of a corporation who has administrative control over the filing of a return or payment of any tax due under this chapter and who willfully directs any employee of the corporation to fail to file the return or pay the tax due or to evade, defeat, or improperly account for the tax due, in addition to any other penalties provided by law, shall be liable for a penalty equal to the amount of tax not paid as required by this chapter. The filing of a protest based upon doubt as to liability for the tax shall not be deemed an attempt to evade or defeat the tax under this subsection. The penalty imposed hereunder shall be abated to the extent the tax is paid and may be compromised by the executive director of the department as provided in s. 213.21. An assessment of penalty made pursuant to this section shall be deemed prima facie correct in any judicial or quasi-judicial proceeding brought to collect this penalty.

History.--s. 1A, ch. 71-134; s. 26, ch. 85-342; s. 6, ch. 86-152; s. 64, ch. 87-6; s. 38, ch. 87-101; s. 5, ch. 87-102; s. 10, ch. 89-356; s. 21, ch. 90-203; s. 233, ch. 91-224; s. 6, ch. 92-320; s. 9, ch. 98-132; s. 7, ch. 2002-218; s. 17, ch. 2003-1.

199.292  Disposition of intangible personal property taxes.--All intangible personal property taxes collected pursuant to this chapter, except for revenues derived from the annual tax on a leasehold described in s. 199.023(1)(d), shall be deposited into the General Revenue Fund. Revenues derived from the annual tax on a leasehold described in s. 199.023(1)(d) shall be returned to the local school board for the county in which the property subject to the leasehold is situated.

History.--s. 1, ch. 71-134; s. 1, ch. 72-277; s. 18, ch. 72-360; s. 1, ch. 77-102; s. 5, ch. 77-476; s. 4, ch. 80-261; s. 4, ch. 80-274; s. 5, ch. 80-368; s. 8, ch. 81-308; s. 27, ch. 85-342; s. 5, ch. 90-132; s. 3, ch. 92-319; s. 10, ch. 98-132; s. 8, ch. 2000-173; s. 8, ch. 2004-234.

199.303  Declaration of legislative intent.--

(1)  If any section, subsection, sentence, clause, phrase, or word of this chapter is for any reason held or declared to be unconstitutional, invalid, inoperative, ineffective, inapplicable, or void, such invalidity or unconstitutionality shall not affect the portions of this chapter not so held to be unconstitutional, void, invalid, or ineffective, or affect the application of this chapter to other circumstances not so held to be invalid, it being the express legislative intent that any such unconstitutional, illegal, invalid, ineffective, inapplicable, or void portion or portions of this chapter did not induce its passage, and that without the inclusion of any such unconstitutional, illegal, invalid, ineffective, or void portions of this chapter, the Legislature would have enacted the valid and constitutional portions thereof.

(2)  It is hereby declared to be the specific legislative intent to tax all intangible personal property that may constitutionally be taxed subject only to the exemptions and credits allowed by law. However, if any application of these statutes is declared unconstitutional, the taxes imposed shall nevertheless remain in force, but only to the extent permitted by the constitutions of this state and of the United States.

History.--s. 5, ch. 92-319.