House Bill 3899c2

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    Florida House of Representatives - 1998          CS/CS/HB 3899

        By the Committees on Finance & Taxation, Financial
    Services, Finance & Taxation and Representatives Starks,
    Melvin, Brooks, Kosmas, Fasano, Maygarden, Trovillion and
    Kelly



  1                      A bill to be entitled

  2         An act relating to intangible personal property

  3         taxes; amending s. 199.023, F.S.; defining

  4         "ministerial function," "processing activity,"

  5         and "investment adviser" for purposes of ch.

  6         199, F.S.; amending s. 199.052, F.S.;

  7         increasing the minimum amount of annual

  8         intangible personal property tax which a person

  9         may be required to pay; providing taxable

10         status of intangible personal property held by

11         a trust for which a bank or savings association

12         acts as trustee or as an agent other than a

13         trustee; providing responsibilities of Florida

14         residents with a beneficial interest in a trust

15         for which a bank or savings association acts as

16         trustee; providing taxable status of assets

17         purchased by, and property managed by, an

18         investment adviser under specified conditions;

19         providing taxable situs of credit card

20         receivables and charge card receivables;

21         defining "credit card receivables" and "charge

22         card receivables"; conforming language;

23         repealing s. 199.052(11), F.S., relating to

24         returns filed by banking organizations, to

25         conform; amending s. 199.175, F.S., relating to

26         taxable situs; conforming language; amending s.

27         199.185, F.S.; revising the exemption from

28         intangible personal property taxes for certain

29         property held in trust; exempting accounts

30         receivable arising out of a trade or business

31         from intangible personal property taxes and

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  1         providing a schedule for implementing the

  2         exemption; exempting stock options granted to

  3         employees by an employer and stock purchased by

  4         employees under certain conditions from

  5         intangible personal property taxes; providing a

  6         full, rather than partial, exemption from the

  7         annual tax for banks and savings associations

  8         and revising application of the exemption;

  9         exempting insurers from the annual tax;

10         repealing s. 199.185(1)(k), F.S., relating to

11         an exemption for real estate mortgage

12         investment conduits, to conform; repealing s.

13         199.104, F.S., which provides a credit against

14         the annual tax for banks and savings

15         associations; repealing s. 220.68, F.S., which

16         provides a credit against the franchise tax

17         imposed on banks and savings associations based

18         on intangible tax paid; amending s. 199.282,

19         F.S.; revising the penalty for late filing of

20         an annual intangible tax return; providing a

21         limitation on combined delinquency and late

22         filing penalties; revising the penalty for

23         omitting or undervaluing property on an annual

24         return; amending s. 199.292, F.S.; revising the

25         distribution of intangible tax revenues;

26         amending s. 220.02, F.S., relating to order of

27         credits against the corporate income tax or

28         franchise tax, and s. 624.509, F.S., relating

29         to the insurance premium tax; conforming

30         language; providing application; providing

31         effective dates.

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  1  Be It Enacted by the Legislature of the State of Florida:

  2

  3         Section 1.  Subsections (13), (14), and (15) are added

  4  to section 199.023, Florida Statutes, to read:

  5         199.023  Definitions.--As used in this chapter:

  6         (13)  "Ministerial function" means an act the

  7  performance of which does not involve the use of discretion or

  8  judgment.

  9         (14)  "Processing activity" means an activity

10  undertaken to administer or service intangible personal

11  property in accordance with such terms, guidelines, criteria,

12  or directions as are provided solely by the owner of the

13  property. Methods, systems, or techniques chosen by the

14  processor to implement such terms, guidelines, criteria, or

15  directions are not considered the exercise of management or

16  control.

17         (15)  "Investment adviser" means any person who, for

18  compensation, engages all or part of his or her time, directly

19  or indirectly, or through publications or writings, in the

20  business of advising others as to the value of securities or

21  as to the advisability of investing in, purchasing of, or

22  selling of securities, or who, for compensation and as part of

23  his or her regular business, issues or promulgates analyses or

24  reports concerning securities.

25         Section 2.  Section 199.052, Florida Statutes, is

26  amended to read:

27         199.052  Annual tax returns; payment of annual tax.--

28         (1)  An annual intangible tax return must be filed with

29  the department by every corporation authorized to do business

30  in this state or doing business in this state and by every

31  person, regardless of domicile, who on January 1 owns,

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  1  controls, or manages intangible personal property which has a

  2  taxable situs in this state.  For purposes of this chapter,

  3  "control" or "manage" does not include any ministerial

  4  function or any processing activity.  The return shall be due

  5  on June 30 of each year.  It shall list separately the

  6  character, description, and just valuation of all such

  7  property.

  8         (2)  No person shall be required to pay the annual tax

  9  in any year when the aggregate annual tax upon the person's

10  intangible personal property, after exemptions, would be less

11  than $60 $5.  In such case, an annual return is not required

12  unless the taxpayer is a corporation, a banking organization

13  claiming the exemption provided in s. 199.185(1)(i), or an

14  agent or fiduciary of whom the department requires an

15  informational return. Agents and fiduciaries shall report for

16  each person for whom they hold intangible personal property if

17  the aggregate annual tax on such person is $60 or more than

18  $5.

19         (3)  A corporation having no intangible tax liability,

20  and required to file an annual report pursuant to s. 607.1622,

21  is not required to file the annual intangible tax return

22  required by this section.

23         (4)  A husband and wife may file a joint return with

24  regard to all intangible personal property held jointly or

25  individually by them. They shall then be jointly liable for

26  the payment of the annual tax.

27         (5)  The trustee of a Florida-situs trust is primarily

28  responsible for returning the trust's intangible personal

29  property and paying the annual tax on it.  The trust's

30  beneficiaries, however, may individually return their

31  equitable shares of the trust's intangible personal property

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  1  and pay the tax on such shares, in which case the trustee need

  2  not return such property or pay such tax, although the

  3  department may require the trustee to file an informational

  4  return.

  5         (6)  Each Florida resident with a beneficial interest,

  6  as defined in s. 199.023(7), in a foreign-situs trust, that

  7  is, a trust with situs outside of this state, is primarily

  8  responsible for returning the resident's equitable share of

  9  the trust's intangible personal property and paying the annual

10  tax on it.  The trustee of a foreign trust may return and pay

11  the tax on the equitable shares of all Florida residents

12  having beneficial interests, in which case the residents need

13  not return such property or pay such tax.

14         (7)  The personal representative or curator of a

15  Florida estate is primarily responsible for returning the

16  estate's intangible personal property and paying the annual

17  tax on it.  The heirs or devisees, however, may individually

18  return their equitable shares of the estate's intangible

19  personal property and pay the tax on such shares, in which

20  case the personal representative or curator need not return

21  such property or pay such tax, although the department may

22  require the personal representative or curator to file an

23  informational return.

24         (8)  The guardian of the property of a Florida

25  incompetent shall return the incompetent's intangible personal

26  property and pay the annual tax on it.  The custodian of a

27  Florida minor under a gifts to minors or similar act shall

28  return the minor's intangible personal property which is

29  subject to the custodianship and pay the annual tax on it.

30         (9)  Where an agent has control or management of

31  intangible personal property, the principal is primarily

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  1  responsible for returning such property and paying the annual

  2  tax on it, but the agent shall return such property on behalf

  3  of the principal and pay the annual tax on it if the principal

  4  fails to do so.  The department may in any case require the

  5  agent to file an informational return.

  6         (10)  An affiliated group of corporations may elect to

  7  make a consolidated return for any year.  The election shall

  8  be made by timely filing a consolidated return. Once made, an

  9  election may not be revoked, and it is binding for the tax

10  year.  The mere making of a consolidated return shall not in

11  itself provide a business situs in this state for intangible

12  personal property held by a corporation.  The fact that

13  members of an affiliated group own stock in corporations which

14  do not qualify under the stock ownership requirements as

15  members of an affiliated group shall not preclude the filing

16  of a consolidated return on behalf of the qualified members.

17  Where a consolidated return is made, intercompany accounts,

18  including the capital stock of an includable corporation,

19  other than the parent, owned by another includable

20  corporation, shall not be subject to annual taxation. However,

21  capital stock and other intercompany accounts of a

22  nonqualified member of the affiliated group shall be subject

23  to annual tax.  Each consolidated return shall be accompanied

24  by documentation identifying all intercompany accounts and

25  containing such other information as the department shall

26  require. Failure to timely file a consolidated return shall

27  not prejudice the taxpayer's right to file a consolidated

28  return, provided that the failure to file a consolidated

29  return is limited to 1 year and the taxpayer's intent to file

30  a consolidated return is evidenced by the taxpayer having

31

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  1  filed a consolidated return for the 3 years prior to the year

  2  the return was not timely filed.

  3         (11)  The return filed by each banking organization

  4  shall set out the character, description, and just valuation

  5  by category of all intangible personal property which is

  6  issued in or arises out of international banking transactions

  7  and which is owned by the banking organization.

  8         (12)  Securities held in margin accounts by a security

  9  broker not acting as a fiduciary shall be returned, and the

10  annual tax on such securities shall be paid, by the customer

11  owning them. The security broker shall not be required to

12  return or pay the tax on such securities.

13         (13)  Except as otherwise provided in this section, the

14  owner of intangible personal property is liable for the

15  payment of annual tax on it, and any other person required to

16  return such property is liable for the tax if the owner fails

17  to pay it.

18         (14)  The annual intangible tax return shall include

19  language permitting a voluntary contribution of $5 per

20  taxpayer, which contribution shall be transferred into the

21  Election Campaign Financing Trust Fund.  A statement providing

22  an explanation of the purpose of the trust fund shall also be

23  included.

24         (15)  If a bank or savings association, as defined by

25  s. 220.62, acts as a trustee of a trust, the bank or savings

26  association shall not be required to return and pay the annual

27  tax on intangible personal property held by the trust. If a

28  bank or savings association, as defined by s. 220.62, acts as

29  a fiduciary or agent of a trust other than as a trustee,

30  intangible personal property of the trust shall not have

31  taxable situs in this state pursuant to s. 199.175 solely by

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  1  virtue of the management or control of the bank or savings

  2  association. For purposes of this chapter, where a bank or

  3  savings association, as defined by s. 220.62, is the trustee

  4  of a trust, the trust shall not be considered a Florida-situs

  5  trust and each Florida resident with a beneficial interest, as

  6  defined by s. 199.023(7), shall be responsible for returning

  7  the resident's equitable share of the trust's intangible

  8  personal property and paying the annual tax on it.

  9         (16)  If an investment adviser does not own but has

10  discretionary authority to invest moneys on behalf of a

11  principal, the investment adviser shall not be required to

12  return and pay the annual tax on intangible personal property

13  with respect to the assets the adviser purchases with such

14  funds of the principal. If an investment adviser acts as a

15  fiduciary or an agent of a principal, intangible personal

16  property of the principal shall not have taxable situs in this

17  state pursuant to s. 199.175 solely by virtue of the

18  management or control of that property by the investment

19  adviser.

20         (17)  Intangibles that are credit card receivables or

21  charge card receivables or related lines of credit or loans

22  which would otherwise be deemed to have taxable situs in this

23  state solely because they are managed or controlled by any

24  person domiciled in this state shall only be treated as having

25  a taxable situs in this state when the debt represented by

26  such intangibles is owed by a customer who is domiciled in

27  this state.  The terms "credit card receivables" and "charge

28  card receivables" do not include trade or service receivables

29  as defined in s. 864 of the Internal Revenue Code of 1986, as

30  amended.

31

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  1         Section 3.  Effective July 1, 2000, subsection (11) of

  2  section 199.052, Florida Statutes, is repealed, and subsection

  3  (2) of said section, as amended by this act, is amended to

  4  read:

  5         199.052  Annual tax returns; payment of annual tax.--

  6         (2)  No person shall be required to pay the annual tax

  7  in any year when the aggregate annual tax upon the person's

  8  intangible personal property, after exemptions, would be less

  9  than $60.  In such case, an annual return is not required

10  unless the taxpayer is a corporation, a banking organization

11  claiming the exemption provided in s. 199.185(1)(i), or an

12  agent or fiduciary of whom the department requires an

13  informational return. Agents and fiduciaries shall report for

14  each person for whom they hold intangible personal property if

15  the aggregate annual tax on such person is $60 or more.

16         Section 4.  Effective July 1, 2000, paragraph (a) of

17  subsection (1) and paragraph (b) of subsection (2) of section

18  199.175, Florida Statutes, are amended to read:

19         199.175  Taxable situs.--For purposes of the annual tax

20  imposed under this chapter:

21         (1)  Intangible personal property shall have a taxable

22  situs in this state when it is owned, managed, or controlled

23  by any person domiciled in this state on January 1 of the tax

24  year.  Such intangibles shall be subject to annual taxation

25  under this chapter, unless the person who owns, manages, or

26  controls them is specifically exempt or unless the property is

27  specifically exempt. This provision shall apply regardless of

28  where the evidence of the intangible property is kept; where

29  the intangible is created, approved, or paid; or where

30  business may be conducted from which the intangible arises.

31  The fact that a Florida corporation owns the stock of an

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  1  out-of-state corporation and manages and controls such

  2  corporation from a location in this state shall not operate to

  3  give a taxable situs in this state to the intangibles owned by

  4  the out-of-state corporation, which intangibles arise out of

  5  business transacted outside this state.

  6         (a)  For the purposes of this chapter, "any person

  7  domiciled in this state" means:

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

  9  state;

10         2.  Any bank or financial institution, business,

11  business trust as described in chapter 609, company,

12  corporation, insurance company, partnership, or other

13  artificial entity organized or created under the law of this

14  state, except a trust; or

15         3.  Any person, including a trust, who has established

16  a commercial domicile in this state.

17         (2)  Intangible personal property shall have a taxable

18  situs in this state when it is deemed to have a business situs

19  in this state and it is owned, managed, or controlled by a

20  person transacting business in this state, even though the

21  owner may claim a domicile elsewhere.  This provision shall

22  apply regardless of where the evidence of the intangible is

23  kept or where the intangible is created, approved, or paid.

24         (b)  Notwithstanding the provisions of this subsection:

25         1.a.  Intangibles that are credit card or charge card

26  receivables or related lines of credit or loans shall be

27  deemed to have business situs in this state only when the debt

28  represented by such intangibles is owed by a customer who is

29  domiciled in this state.

30         b.  The performance of ministerial functions relating

31  to, or the processing of, credit card or charge card

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  1  receivables in this state for the owner of such receivables is

  2  not sufficient to support a finding that the owner is

  3  transacting business in this state.

  4         c.  The term "credit card or charge card receivables"

  5  does not include trade or service receivables as defined in s.

  6  864 of the Internal Revenue Code of 1986, as amended.

  7         2.  An intangible owned by a real estate mortgage

  8  investment conduit, a real estate investment trust, or a

  9  regulated investment company, as those terms are defined in

10  the United States Internal Revenue Code of 1986, as amended,

11  shall not be deemed to have a taxable situs in this state

12  unless such entity has its legal or commercial domicile in

13  this state.

14         3.  The ownership of any interest in a participation or

15  syndication loan or pool of loans, notes, or receivables shall

16  not be sufficient to support a finding that the owner of such

17  interest is transacting business in this state.  For the

18  purposes of this subparagraph, a participation or syndication

19  loan is a loan in which more than one lender is a creditor to

20  a common borrower, and a participation or syndication interest

21  in a pool of loans, notes, or receivables is an interest

22  acquired from the originator or initial creditor with respect

23  to the loans, notes, or receivables constituting the pool.

24         4.  Assets owned by a foreign insurance company, as

25  defined in s. 624.06, shall not be deemed to have a business

26  situs in this state if they are managed and controlled outside

27  this state.

28         Section 5.  (1)  Subsections (1) and (5) of section

29  199.185, Florida Statutes, are amended, and subsection (8) is

30  added to said section, to read:

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  1         199.185  Property exempted from annual and nonrecurring

  2  taxes.--

  3         (1)  The following intangible personal property shall

  4  be exempt from the annual and nonrecurring taxes imposed by

  5  this chapter:

  6         (a)  Money.

  7         (b)  Franchises.

  8         (c)  Any interest as a partner in a partnership, either

  9  general or limited, other than any interest as a limited

10  partner in a limited partnership registered with the

11  Securities and Exchange Commission pursuant to the Securities

12  Act of 1933, as amended.

13         (d)  Notes, bonds, and other obligations issued by the

14  State of Florida or its municipalities, counties, and other

15  taxing districts, or by the United States Government and its

16  agencies.

17         (e)  Intangible personal property held in trust

18  pursuant to any stock bonus, pension, or profit-sharing plan

19  or any individual retirement account which is qualified under

20  s. 530, s. 401, or s. 408, or s. 408A of the United States

21  Internal Revenue Code, 26 U.S.C. ss. 530, 401, and 408, and

22  408A, as amended.

23         (f)  Intangible personal property held under a

24  retirement plan of a Florida-based corporation exempt from

25  federal income tax under s. 501(c)(6) of the United States

26  Internal Revenue Code, 26 U.S.C., if the primary purpose of

27  the corporation is to support the promotion of professional

28  sports and the retirement plan is either a qualified plan

29  under s. 457 of the United States Internal Revenue Code or the

30  contributions to the plan, pursuant to a ruling by the United

31  States Internal Revenue Service, are not taxable to plan

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  1  participants until actual receipt or withdrawal by the

  2  participant.

  3         (g)  Notes and other obligations, except bonds, to the

  4  extent that such notes and obligations are secured by

  5  mortgage, deed of trust, or other lien upon real property

  6  situated outside the state.

  7         (h)  The assets of a corporation registered under the

  8  Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as

  9  amended.

10         (i)  All intangible personal property issued in or

11  arising out of any international banking transaction and owned

12  by a banking organization.

13         (j)  Units of a unit investment trust organized under

14  an agreement or declaration of trust and registered under the

15  Investment Company Act of 1940, as amended, whose portfolio of

16  assets consists solely of assets exempt under this section.

17         (k)  Real estate mortgage investment conduits (REMIC)

18  that are directly or indirectly secured by or payable from

19  notes and obligations that are in turn secured by a mortgage,

20  deed of trust, or other lien upon real property situated in or

21  outside of the state, including but not limited to mortgage

22  pools, participations, and derivatives and are held as

23  investments by banks or savings associations in compliance

24  with regulatory agency guidelines.

25         (l)  One-third of the accounts receivable arising in

26  the ordinary course of a trade or business which are owned,

27  controlled, or managed by a taxpayer on January 1, 1999;

28  two-thirds of the accounts receivable owned, controlled, or

29  managed by a taxpayer on January 1, 2000; and all of such

30  accounts receivable owned, controlled, or managed by a

31  taxpayer on January 1, 2001, and thereafter. This exemption

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  1  does not apply to accounts receivable which arise outside the

  2  taxpayer's ordinary course of trade or business. For the

  3  purposes of this chapter, "accounts receivable" means a

  4  business debt which is owed by another to the taxpayer or the

  5  taxpayer's assignee in the ordinary course of trade or

  6  business and is not supported by negotiable instruments.

  7  Accounts receivable include, but are not limited to, credit

  8  card receivables, charge card receivables, credit receivables,

  9  margin receivables, inventory or other floor plan financing,

10  lease payments past due, conditional sales contracts, retail

11  installment sales agreements, financing lease contracts, and a

12  claim against a debtor usually arising from sales or services

13  rendered and which is not necessarily due or past due. The

14  examples specified in this paragraph shall be deemed not to be

15  supported by negotiable instruments. "Negotiable instrument"

16  means a written document that is legally capable of being

17  transferred by endorsement or delivery. "Endorsement" means

18  the act of a payee or holder in writing his or her name on the

19  back of an instrument without further qualifying words other

20  than "pay to the order of" or "pay to" whereby the property is

21  assigned and transferred to another.

22         (m)  Stock options granted to employees by their

23  employer pursuant to an incentive plan, if the employee cannot

24  transfer, sell, or mortgage the options. Stock purchased by an

25  employee from an employer pursuant to an incentive plan shall

26  be treated as a nontaxable stock option if part of the

27  purchase price of the stock is nonrecourse debt secured by the

28  stock and the stock cannot be sold, transferred, or assigned

29  by the employee until the nonrecourse debt is discharged. Such

30  stock shall become taxable stock when it can be sold,

31  transferred, or assigned by the employee.

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  1         (5)  Those organizations Every bank and savings

  2  association, as defined in s. 220.62(1), (2), (3), or (4) are,

  3  is exempt from .5 mill of the tax imposed by s. 199.032.

  4         (8)  Every insurer, as defined in s. 624.03, whether

  5  the insurer is authorized or unauthorized as defined in s.

  6  624.09, is exempt from the tax imposed by s. 199.032.

  7         (2)  The amendment to subsection (5) and the creation

  8  of subsection (8) of s. 199.185, Florida Statutes, by this

  9  section shall apply to taxes due on or after July 1, 1999.

10         Section 6.  Effective July 1, 2000, paragraph (k) of

11  subsection (1) of section 199.185, Florida Statutes, is

12  repealed.

13         Section 7.  Effective for tax years beginning after

14  December 31, 1999, sections 199.104 and 220.68, Florida

15  Statutes, are repealed.

16         Section 8.  Subsections (3) and (4) of section 199.282,

17  Florida Statutes, are amended to read:

18         199.282  Penalties for violation of this chapter.--

19         (3)(a)  If any annual or nonrecurring tax is not paid

20  by the due date, a delinquency penalty shall be charged.  The

21  delinquency penalty shall be 10 percent of the delinquent tax

22  for each calendar month or portion thereof from the due date

23  until paid, up to a limit of 50 percent of the total tax not

24  timely paid.

25         (b)  If any annual tax return required by this chapter

26  is not filed by the due date, a penalty of 10 30 percent of

27  the tax due with the return shall be charged for each calendar

28  month or portion thereof during which the return remains

29  unfiled, up to a limit of 50 percent of the total tax due for

30  each year or portion of the year during which the return

31  remains unfiled.

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  1

  2  For any penalty assessed under this subsection, the combined

  3  total for all penalties assessed under paragraphs (a) and (b)

  4  shall not exceed 10 percent per calendar month, up to a limit

  5  of 50 percent of the total tax due.

  6         (4)  If an annual tax return is filed and property is

  7  either omitted from it or undervalued, then a specific penalty

  8  shall be charged.  The specific penalty shall be 10 30 percent

  9  of the tax attributable to each omitted item or to each

10  undervaluation. No delinquency or late filing penalty shall be

11  charged with respect to any undervaluation.

12         Section 9.  Effective July 1, 1999, subsection (3) of

13  section 199.292, Florida Statutes, is amended to read:

14         199.292  Disposition of intangible personal property

15  taxes.--All intangible personal property taxes collected

16  pursuant to this chapter shall be placed in a special fund

17  designated as the "Intangible Tax Trust Fund." The fund shall

18  be disbursed as follows:

19         (3)  An amount equal to 35.7 33.5 percent of the

20  remaining intangible personal property taxes collected shall

21  be transferred to the Revenue Sharing Trust Fund for Counties.

22  An amount equal to 64.3 66.5 percent of the remaining taxes

23  collected shall be transferred to the General Revenue Fund of

24  the state.

25         Section 10.  Effective July 1, 2000, subsection (10) of

26  section 220.02, Florida Statutes, is amended to read:

27         220.02  Legislative intent.--

28         (10)  It is the intent of the Legislature that credits

29  against either the corporate income tax or the franchise tax

30  be applied in the following order: those enumerated in s.

31  220.68, those enumerated in s. 631.719(1), those enumerated in

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  1  s. 631.705, those enumerated in s. 220.18, those enumerated in

  2  s. 631.828, those enumerated in s. 220.181, those enumerated

  3  in s. 220.183, those enumerated in s. 220.182, those

  4  enumerated in s. 220.1895, those enumerated in s. 221.02,

  5  those enumerated in s. 220.184, those enumerated in s.

  6  220.186, and those enumerated in s. 220.188.

  7         Section 11.  Effective July 1, 2000, subsections (4),

  8  (7), and (8) of section 624.509, Florida Statutes, are amended

  9  to read:

10         624.509  Premium tax; rate and computation.--

11         (4)  The intangible tax imposed under chapter 199, The

12  income tax imposed under chapter 220, and the emergency excise

13  tax imposed under chapter 221 which are paid by any insurer

14  shall be credited against, and to the extent thereof shall

15  discharge, the liability for tax imposed by this section for

16  the annual period in which such tax payments are made.  As to

17  any insurer issuing policies insuring against loss or damage

18  from the risks of fire, tornado, and certain casualty lines,

19  the tax imposed by this section, as intended and contemplated

20  by this subsection, shall be construed to mean the net amount

21  of such tax remaining after there has been credited thereon

22  such gross premium receipts tax as may be payable by such

23  insurer in pursuance of the imposition of such tax by any

24  incorporated cities or towns in the state for firefighters'

25  relief and pension funds and police officers' retirement funds

26  maintained in such cities or towns, as provided in and by

27  relevant provisions of the Florida Statutes.  For purposes of

28  this subsection, payments of estimated income tax under

29  chapter 220 and of estimated emergency excise tax under

30  chapter 221 shall be deemed paid either at the time the

31  insurer actually files its annual returns under chapter 220 or

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  1  at the time such returns are required to be filed, whichever

  2  first occurs, and not at such earlier time as such payments of

  3  estimated tax are actually made.

  4         (7)  Credits and deductions against the tax imposed by

  5  this section shall be taken in the following order: deductions

  6  for assessments made pursuant to s. 440.51; credits for taxes

  7  paid under ss. 175.101 and 185.08; credits for income taxes

  8  paid under chapter 220, the emergency excise tax paid under

  9  chapter 221 and the credit allowed under subsection (5), as

10  these credits are limited by subsection (6); credits for

11  intangible taxes paid under chapter 199; all other available

12  credits and deductions.

13         (8)  From and after July 1, 1980, the premium tax

14  authorized by this section shall not be imposed upon receipts

15  of annuity premiums or considerations paid by holders in this

16  state and from and after July 1, 1991, the intangible tax

17  imposed by chapter 199 shall not be imposed on assets equal to

18  the statutory legal reserves of annuity products maintained by

19  insurance companies on behalf of their holders if the tax

20  savings derived are credited to the annuity holders.  Upon

21  request by the Department of Revenue, any insurer availing

22  itself of this provision shall submit to the department

23  evidence which establishes that the tax savings derived have

24  been credited to annuity holders.  As used in this subsection,

25  the term "holders" shall be deemed to include employers

26  contributing to an employee's pension, annuity, or

27  profit-sharing plan.

28         Section 12.  For tax years beginning after December 31,

29  1999, no credit under s. 624.509(4), Florida Statutes, for

30  intangible tax imposed under chapter 199, Florida Statutes,

31  shall be available.

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  1         Section 13.  Except as otherwise provided herein, this

  2  act shall take effect July 1 of the year in which enacted.

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