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House Bill 0477

Florida House of Representatives - 1997 HB 477 By Representative Logan 1 A bill to be entitled 2 An act relating to tax administration; amending 3 s. 95.091, F.S.; revising time periods within 4 which the Department of Revenue and Department 5 of Business and Professional Regulation may 6 determine and assess the amount of any tax, 7 penalty, or interest due under taxes which they 8 have authority to administer; amending s. 9 213.015, F.S.; specifying additional taxpayer's 10 rights; creating s. 213.235, F.S.; providing 11 for determination of the annual rate of 12 interest applicable to tax payment 13 deficiencies; creating s. 213.255, F.S.; 14 providing for payment of interest on 15 overpayments of taxes, payment of taxes not 16 due, or taxes paid in error with respect to 17 taxes administered by the Department of Revenue 18 if refund is not made within a specified 19 period; providing requirements for refund 20 applications; requiring a bond or other 21 security under certain conditions; amending s. 22 213.34, F.S.; providing that no part of the 23 compensation of an employee or agent of the 24 state performing a tax audit shall be based on 25 amounts assessed or collected as a result of 26 the audit; amending s. 215.26, F.S.; revising 27 the time period within which application for 28 refund of taxes must be made; amending s. 29 197.172, F.S., relating to the rate of interest 30 on delinquent real and personal property taxes, 31 s. 193.1145, F.S., relating to the rate of 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 interest on delinquent provisional property 2 taxes, s. 198.18, F.S., relating to the rate of 3 interest on delinquent estate taxes, s. 4 199.282, F.S., relating to the rate of interest 5 on delinquent intangible personal property 6 taxes, s. 201.17, F.S., relating to the rate of 7 interest on delinquent excise taxes on 8 documents, and s. 203.06, F.S., relating to the 9 rate of interest on delinquent gross receipts 10 taxes, to conform; reenacting s. 203.62, F.S., 11 relating to the gross receipts tax on 12 interstate and international telecommunications 13 services, to incorporate the amendment to s. 14 203.06, F.S., in a reference thereto; amending 15 s. 206.44, F.S., relating to the rate of 16 interest on delinquent motor fuel taxes, to 17 conform; reenacting ss. 206.06(1), 206.94, 18 206.97, 206.9915(3), 336.021(2)(a), and 19 336.025(2)(a), F.S., relating to estimated fuel 20 taxes, tax on diesel fuel, tax on fuel and 21 other pollutants, the ninth-cent fuel tax on 22 motor and diesel fuel, and the local option tax 23 on motor and diesel fuel for county 24 transportation systems, to incorporate the 25 amendment to s. 206.44, F.S., in references 26 thereto; amending s. 207.007, F.S., relating to 27 the rate of interest on delinquent tax on the 28 operation of commercial motor vehicles, ss. 29 211.076 and 211.33, F.S., relating to the rate 30 of interest on delinquent taxes on oil and gas 31 production and severance of minerals, and s. 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 212.12, F.S., relating to the rate of interest 2 on delinquent taxes on sales, use, and other 3 transactions, to conform; reenacting ss. 4 193.501(6)(e) and 193.505(8), F.S., relating to 5 the interest on a deferred tax liability due 6 upon a change in assessment status of certain 7 conservation or recreation land or historically 8 significant property, and s. 196.1997(7), F.S., 9 relating to the interest on taxes which become 10 due when property is no longer eligible for a 11 historic property tax exemption, to incorporate 12 the amendment to s. 212.12, F.S., in references 13 thereto; amending s. 220.807, F.S., relating to 14 the interest rate applicable to the corporate 15 income tax code, and s. 624.5092, F.S., 16 relating to the rate of interest on delinquent 17 insurance premium taxes, to conform; directing 18 the Department of Revenue to examine and report 19 on the impact of the act; providing effective 20 dates. 21 22 Be It Enacted by the Legislature of the State of Florida: 23 24 Section 1. Paragraph (a) of subsection (3) of section 25 95.091, Florida Statutes, is amended to read: 26 95.091 Limitation on actions to collect taxes.-- 27 (3)(a)1. With the exception of taxes levied under 28 chapter 198 and tax adjustments made pursuant to s. 220.23, 29 the Department of Revenue may determine and assess the amount 30 of any tax, penalty, or interest due under any tax enumerated 31 in s. 72.011 which it has authority to administer and the 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 Department of Business and Professional Regulation may 2 determine and assess the amount of any tax, penalty, or 3 interest due under any tax enumerated in s. 72.011 which it 4 has authority to administer: 5 a. Within 3 5 years after the date the tax is due, any 6 return with respect to the tax is due, or such return is 7 filed, whichever occurs later; 8 b. Within 4 6 years after the date the taxpayer either 9 makes a substantial underpayment of tax, or files a 10 substantially incorrect return; 11 c. At any time while the right to a refund or credit 12 of the tax is available to the taxpayer; 13 d. At any time after the taxpayer has failed to make 14 any required payment of the tax, has failed to file a required 15 return, or has filed a grossly false or fraudulent return; or 16 e. In any case in which there has been a refund of tax 17 erroneously made for any reason, within 5 years after making 18 such refund, or at any time after making such refund if it 19 appears that any part of the refund was induced by fraud or 20 the misrepresentation of a material fact. 21 2. For the purpose of this paragraph, a tax return 22 filed before the last day prescribed by law, including any 23 extension thereof, shall be deemed to have been filed on such 24 last day, and payments made prior to the last day prescribed 25 by law shall be deemed to have been paid on such last day. 26 Section 2. Effective July 1, 1997, subsection (16) is 27 added to section 213.015, Florida Statutes, 1996 Supplement, 28 and, effective January 1, 1999, subsections (17), (18), and 29 (19) are added to said section, to read: 30 213.015 Taxpayer rights.--There is created a Florida 31 Taxpayer's Bill of Rights to guarantee that the rights, 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 privacy, and property of Florida taxpayers are adequately 2 safeguarded and protected during tax assessment, collection, 3 and enforcement processes administered under the revenue laws 4 of this state. The Taxpayer's Bill of Rights compiles, in one 5 document, brief but comprehensive statements which explain, in 6 simple, nontechnical terms, the rights and obligations of the 7 Department of Revenue and taxpayers. The rights afforded 8 taxpayers to assure that their privacy and property are 9 safeguarded and protected during tax assessment and collection 10 are available only insofar as they are implemented in other 11 parts of the Florida Statutes or rules of the Department of 12 Revenue. The rights so guaranteed Florida taxpayers in the 13 Florida Statutes and the departmental rules are: 14 (16) The right to assurance that no part of the 15 compensation of employees or agents of any governmental entity 16 in Florida, when performing tax audits, will be based on the 17 amount of tax assessed or collected as a result of the audit 18 (see ss. 213.28 and 213.34). 19 (17) The right to receive interest when a refund is 20 not paid within 90 days after receipt of a complete 21 application for refund for overpayments, payment of taxes not 22 due, or taxes paid in error (see ss. 213.255 and 220.723). 23 (18) The right to market interest rates on delinquent 24 taxes (see s. 213.235). 25 (19) The right to the same statute of limitations on 26 assessments and refunds (see ss. 95.091, 213.25, 215.26, and 27 220.727). 28 Section 3. Section 213.235, Florida Statutes, is 29 created to read: 30 213.235 Determination of interest on deficiencies.-- 31 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 (1) The annual rate of interest applicable to tax 2 payment deficiencies shall be the adjusted rate established by 3 the executive director of the department under subsection (2). 4 This annual rate of interest is applicable to all taxes 5 enumerated in s. 213.05. 6 (2) If the adjusted prime rate charged by banks, 7 rounded to the nearest full percent, during either: 8 (a) The 6-month period ending on September 30 of any 9 calendar year; or 10 (b) The 6-month period ending on March 31 of any 11 calendar year, 12 13 differs from the interest rate in effect on such date, the 14 executive director of the department shall, within 20 days, 15 establish an adjusted rate of interest equal to such adjusted 16 prime rate. 17 (3) An adjusted rate of interest established under 18 this section shall become effective: 19 (a) On January 1 of the succeeding year, if based upon 20 the adjusted prime rate for the 6-month period ending on 21 September 30; or 22 (b) On July 1 of the same calendar year, if based upon 23 the adjusted prime rate for the 6-month period ending on March 24 31. 25 (4) For the purposes of this section, "adjusted prime 26 rate charged by banks" means the average predominant prime 27 rate quoted by commercial banks to large businesses, as 28 determined by the Board of Governors of the Federal Reserve 29 System. 30 31 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 (5) Once established, an adjusted rate of interest 2 shall remain in effect until an adjustment is made under 3 subsection (2). 4 Section 4. Section 213.255, Florida Statutes, is 5 created to read: 6 213.255 Interest.--Interest shall be paid on 7 overpayments of taxes, payment of taxes not due, or taxes paid 8 in error, subject to the following conditions: 9 (1) A refund application must be filed with the 10 department within the time specified by s. 215.26. 11 (2) A refund application shall not be processed until 12 it is determined complete. A refund application is complete 13 if it is filed on a permitted form and contains: 14 (a) The taxpayer's name, address, identifying number, 15 and signature. 16 (b) Sufficient information, whether on the application 17 or attachments, to permit mathematical verification of the 18 amount of the refund. 19 (c) The amount claimed. 20 (d) The specific grounds upon which the refund is 21 claimed. 22 (e) The taxable years or periods involved. 23 (f) A completed audit, if an audit is required by the 24 department. 25 (3) If the refund application is not complete, the 26 department shall return the application to the taxpayer with 27 instructions to include any documents needed to complete the 28 application. 29 (4) Interest shall not commence until 90 days after a 30 complete refund application has been filed and the amount of 31 overpayment has not been refunded to the taxpayer or applied 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 as a credit to the taxpayer's account. If the department and 2 the taxpayer mutually agree that an audit of the claim is 3 necessary, interest shall not commence until the audit of the 4 claim is final. 5 (5) If a tax is adjudicated unconstitutional and 6 refunds are ordered by the court, interest shall not commence 7 on complete applications until 90 days after the adjudication 8 becomes final and unappealable or 90 days after a complete 9 application has been filed, whichever is later. 10 (6) Interest shall be paid until a date determined by 11 the department which shall be no more than 7 days prior to the 12 date of the issuance of the refund warrant by the Comptroller. 13 (7) No interest shall be paid if the department has 14 reasonable cause to believe that it could not recover the 15 amount of any refund paid in error from the person claiming 16 the refund, unless such person files a cash bond or a surety 17 bond in the amount of the refund claimed or such person makes 18 other security arrangements satisfactory to the department. 19 The cash or surety bond shall be endorsed by a surety company 20 authorized to do business in this state and shall be 21 conditioned upon payment in full of the amount of any refund 22 paid in error for any reason. The department shall provide a 23 written notice of its determination that a cash or surety bond 24 is required, in which event interest shall not commence until 25 the person filing the claim satisfies this requirement. 26 (8) The rate of interest shall be the adjusted rate 27 established pursuant to s. 213.235, except that the annual 28 rate of interest shall never be greater than 11 percent. This 29 annual rate of interest shall be applied to all refunds of 30 taxes administered by the department except for corporate 31 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 income taxes and emergency excise taxes governed by ss. 2 220.721 and 220.723. 3 Section 5. Effective July 1, 1997, subsection (1) of 4 section 213.34, Florida Statutes, is amended to read: 5 213.34 Authority to audit.-- 6 (1) The Department of Revenue shall have the authority 7 to audit and examine the accounts, books, or records of all 8 persons who are subject to a revenue law made applicable to 9 this chapter, or otherwise placed under the control and 10 administration of the department, for the purpose of 11 ascertaining the correctness of any return which has been 12 filed or payment which has been made, or for the purpose of 13 making a return where none has been made. No part of the 14 compensation of any employee or agent of the state performing 15 a tax audit shall be based on the amount of tax assessed or 16 collected as a result of the audit. 17 Section 6. Subsection (2) of section 215.26, Florida 18 Statutes, 1996 Supplement, is amended to read: 19 215.26 Repayment of funds paid into State Treasury 20 through error.-- 21 (2) Application for refunds as provided by this 22 section must be filed with the Comptroller, except as 23 otherwise provided in this subsection, within 3 years after 24 the right to the refund has accrued or else the right is 25 barred. Except as provided in chapter 198 and s. 220.23, an 26 application for a refund of a tax enumerated in s. 72.011, 27 which tax was paid after September 30, 1994, must be filed 28 with the Comptroller within 5 years after the date the tax is 29 paid. The Comptroller may delegate the authority to accept an 30 application for refund to any state agency, or the judicial 31 branch, vested by law with the responsibility for the 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 collection of any tax, license, or account due. The 2 application for refund must be on a form approved by the 3 Comptroller and must be supplemented with additional proof the 4 Comptroller deems necessary to establish the claim; provided, 5 the claim is not otherwise barred under the laws of this 6 state. Upon receipt of an application for refund, the judicial 7 branch or the state agency to which the funds were paid shall 8 make a determination of the amount due. If an application for 9 refund is denied, in whole or in part, the judicial branch or 10 such state agency shall notify the applicant stating the 11 reasons therefor. Upon approval of an application for refund, 12 the judicial branch or such state agency shall furnish the 13 Comptroller with a properly executed voucher authorizing 14 payment. 15 Section 7. Subsections (1) and (3) of section 197.172, 16 Florida Statutes, are amended to read: 17 197.172 Interest rate; calculation and minimum.-- 18 (1) Real property taxes shall bear interest at the 19 adjusted rate established pursuant to s. 213.235 of 18 percent 20 per year from the date of delinquency until a certificate is 21 sold, except that the minimum charge for delinquent taxes paid 22 prior to the sale of a tax certificate shall be 3 percent. 23 (3) Personal property taxes shall bear interest at the 24 adjusted rate established pursuant to s. 213.235 of 18 percent 25 per year from the date of delinquency until paid or barred 26 under chapter 95. 27 Section 8. Paragraph (a) of subsection (10) of section 28 193.1145, Florida Statutes, is amended to read: 29 193.1145 Interim assessment rolls.-- 30 (10)(a) Delinquent provisional taxes on real property 31 shall not be subject to the delinquent tax provisions of 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 chapter 197 until such time as the assessment roll is 2 reconciled, supplemental bills are issued, and taxes on the 3 property remain delinquent. However, delinquent provisional 4 taxes on real property shall accrue interest at an annual rate 5 of 12 percent, computed in accordance with s. 197.172. 6 Interest accrued on provisional taxes shall be added to the 7 taxes, interest, costs, and charges due with respect to final 8 taxes levied. When interest begins to accrue on delinquent 9 provisional taxes, the property owner shall be given notice by 10 first-class mail. 11 (b) Delinquent provisional taxes on personal property 12 shall be subject to all applicable provisions of chapter 197. 13 Section 9. Subsection (2) of section 198.18, Florida 14 Statutes, is amended to read: 15 198.18 Failure to pay tax; penalties; delinquent or 16 deficient taxes, interest.-- 17 (2) Any deficiency in tax or any tax payment not 18 received by the department on or before the due date as 19 provided in s. 198.15, in addition to any other penalties, 20 shall bear interest at the adjusted rate established pursuant 21 to s. 213.235 of 1 percent per month of the amount due from 22 the due date until paid. The department may settle or 23 compromise such interest pursuant to s. 213.21. 24 Section 10. Subsection (2) of section 199.282, Florida 25 Statutes, is amended to read: 26 199.282 Penalties for violation of this chapter.-- 27 (2) If any annual or nonrecurring tax is not paid by 28 the statutory due date, then despite any extension granted 29 under s. 199.232(6), interest shall run on the unpaid balance 30 from such due date until paid at the adjusted rate established 31 pursuant to s. 213.235 of 12 percent per year. 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 Section 11. Paragraph (c) of subsection (2) of section 2 201.17, Florida Statutes, 1996 Supplement, as amended by 3 chapter 96-395, Laws of Florida, is amended to read: 4 201.17 Penalties for failure to pay tax required.-- 5 (2) If any document, instrument, or paper upon which 6 the tax under this chapter is imposed, upon audit or at time 7 of recordation, does not show the proper amount of tax paid, 8 or if the tax imposed by this chapter on any document, 9 instrument, or paper is not timely reported and paid as 10 required by s. 201.133, the person or persons liable for the 11 tax upon the document, instrument, or paper shall be subject 12 to: 13 (c) Payment of interest to the Department of Revenue, 14 accruing from the date the tax is due until paid, at the 15 adjusted rate established pursuant to s. 213.235 of 1 percent 16 per month, based on the amount of tax not paid. 17 Section 12. Section 203.06, Florida Statutes, is 18 amended to read: 19 203.06 Interest on delinquent payments.--Any payments 20 as imposed in this chapter, if not received by the Department 21 of Revenue on or before the due date as provided by law, shall 22 include, as an additional part of such amount due, interest at 23 the adjusted rate established pursuant to s. 213.235 of 1 24 percent per month, accruing from the date due until paid. 25 Section 13. For the purpose of incorporating the 26 amendment to section 203.06, Florida Statutes, in a reference 27 thereto, section 203.62, Florida Statutes, is reenacted to 28 read: 29 203.62 Applicability of specified sections of part 30 I.--The provisions of ss. 203.01, 203.012, 203.013, 203.02, 31 203.03, 203.04, 203.06, and 203.07 shall be applicable to the 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 levy and collection of taxes imposed pursuant to this part as 2 if fully set out in this part. 3 Section 14. Subsection (2) of section 206.44, Florida 4 Statutes, is amended to read: 5 206.44 Penalty and interest for failure to report on 6 time; penalty and interest on tax deficiencies.-- 7 (2) Any payment that is not received by the department 8 on or before the due date as provided in s. 206.43 shall bear 9 interest at the adjusted rate established pursuant to s. 10 213.235 of 1 percent per month, from the date due until paid. 11 Interest on any delinquent tax shall be calculated beginning 12 on the 21st day of the month for which the tax is due, except 13 as otherwise provided in this part. 14 Section 15. For the purpose of incorporating the 15 amendment to section 206.44, Florida Statutes, in a reference 16 thereto, subsection (1) of section 206.06, Florida Statutes, 17 as amended by chapter 95-417, Laws of Florida, is reenacted to 18 read: 19 206.06 Estimate of amount of fuel taxes due and 20 unpaid.-- 21 (1) Whenever any terminal supplier, importer, 22 exporter, or wholesaler neglects or refuses to make and file 23 any report for any calendar month, as required by the fuel tax 24 laws of this state, or files an incorrect or fraudulent 25 report, or is in default in the payment of any fuel taxes and 26 penalties thereon payable under the laws of this state, the 27 department shall, from any information it may be able to 28 obtain from its office or elsewhere, estimate the number of 29 gallons of motor fuel with respect to which the terminal 30 supplier, importer, exporter, or wholesaler has become liable 31 for taxes under the fuel tax laws of this state and the amount 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 of taxes due and payable thereon, to which sum shall be added 2 a penalty and interest as provided in s. 206.44. 3 Section 16. For the purpose of incorporating the 4 amendment to section 206.44, Florida Statutes, in a reference 5 thereto, section 206.94, Florida Statutes, as amended by 6 chapter 95-417, Laws of Florida, is reenacted to read: 7 206.94 Department may estimate diesel fuels sold or 8 used.--When any person neglects or refuses to file any report 9 as required by s. 206.91 or files an incorrect or fraudulent 10 report, the department shall determine, after investigation, 11 the number of gallons of diesel fuels with respect to which 12 the person has incurred liability under this part for any 13 particular period and fix the amount of taxes due and payable 14 thereon, to which taxes due shall be added the penalties and 15 interest imposed by s. 206.44 as a penalty for the default of 16 such person. The department may settle or compromise such 17 penalties pursuant to s. 213.21. 18 Section 17. For the purpose of incorporating the 19 amendment to section 206.44, Florida Statutes, in a reference 20 thereto, section 206.97, Florida Statutes, as amended by 21 chapter 95-417, Laws of Florida, is reenacted to read: 22 206.97 Applicability of specified sections of part 23 I.--The provisions of ss. 206.01, 206.02, 206.026, 206.027, 24 206.028, 206.04, 206.051, 206.052, 206.054, 206.055, 206.07, 25 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12, 26 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18, 27 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22, 28 206.23, 206.24, 206.25, 206.27, 206.28, 206.41, 206.415, 29 206.416, 206.43, 206.435, 206.44, 206.48, 206.49, 206.56, 30 206.59, 206.606, 206.608, 206.61, and 206.62 of part I of this 31 chapter shall, as far as lawful or practicable, be applicable 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 to the tax herein levied and imposed and to the collection 2 thereof as if fully set out in this part. However, no 3 provision of any such section shall apply if it conflicts with 4 any provision of this part. 5 Section 18. For the purpose of incorporating the 6 amendment to section 206.44, Florida Statutes, in a reference 7 thereto, subsection (3) of section 206.9915, Florida Statutes, 8 1996 Supplement, is reenacted to read: 9 206.9915 Legislative intent and general provisions.-- 10 (3) The provisions of ss. 206.01, 206.02, 206.026, 11 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 12 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 13 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 14 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 15 206.22, 206.24, 206.27, 206.28, 206.416, 206.42, 206.425, 16 206.44, 206.48, 206.49, 206.56, 206.59, 206.86, 206.87, 17 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.8745, 18 206.94, 206.945, and 206.9815 shall, as far as lawful or 19 practicable, be applicable to the levy and collection of taxes 20 imposed pursuant to this part as if fully set out in this part 21 and made expressly applicable to the taxes imposed herein. 22 Section 19. For the purpose of incorporating the 23 amendment to section 206.44, Florida Statutes, in a reference 24 thereto, paragraph (a) of subsection (2) of section 336.021, 25 Florida Statutes, 1996 Supplement, is reenacted to read: 26 336.021 County transportation system; levy of 27 ninth-cent fuel tax on motor fuel and diesel fuel.-- 28 (2)(a) The tax collected by the department pursuant to 29 subsection (1) shall be transferred to the Ninth-cent Fuel Tax 30 Trust Fund, which fund is created for distribution to the 31 counties pursuant to paragraph (1)(d). The department has the 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 authority to prescribe and publish all forms upon which 2 reports shall be made to it and other forms and records deemed 3 to be necessary for proper administration and collection of 4 the tax levied by any county and shall adopt rules necessary 5 to enforce this section, which rules shall have the full force 6 and effect of law. The provisions of ss. 206.026, 206.027, 7 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 206.07, 8 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12, 9 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18, 10 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22, 11 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.48, 12 206.49, 206.56, 206.59, 206.626, 206.87, 206.872, 206.873, 13 206.8735, 206.874, 206.8741, 206.8745, 206.94, and 206.945 14 shall, as far as practicable, be applicable to the levy and 15 collection of the tax imposed pursuant to this section as if 16 fully set out in this section. 17 Section 20. Effective July 1, 1999, for the purpose of 18 incorporating the amendment to section 206.44, Florida 19 Statutes, in a reference thereto, paragraph (a) of subsection 20 (2) of section 336.021, Florida Statutes, 1996 Supplement, as 21 amended by section 17 of chapter 96-397, Laws of Florida, is 22 reenacted to read: 23 336.021 County transportation system; levy of 24 ninth-cent fuel tax on motor fuel and diesel fuel.-- 25 (2)(a) The tax collected by the department pursuant to 26 subsection (1) shall be transferred to the Ninth-cent Fuel Tax 27 Trust Fund, which fund is created for distribution to the 28 counties pursuant to paragraph (1)(d). The department shall 29 deduct the administrative costs incurred by it in collecting, 30 administering, enforcing, and distributing back to the 31 counties the tax, which administrative costs may not exceed 2 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 percent of collections authorized by this section. The total 2 administrative cost shall be prorated among those counties 3 levying the tax according to the following formula, which 4 shall be revised on July 1 of each year: Two-thirds of the 5 amount deducted shall be based on the county's proportional 6 share of the number of taxpayers who are registered and 7 required to file tax returns on June 30th of the preceding 8 state fiscal year, and one-third of the amount deducted shall 9 be based on the county's share of the total amount of the tax 10 collected during the preceding state fiscal year. The 11 department has the authority to prescribe and publish all 12 forms upon which reports shall be made to it and other forms 13 and records deemed to be necessary for proper administration 14 and collection of the tax levied by any county and shall adopt 15 rules necessary to enforce this section, which rules shall 16 have the full force and effect of law. The provisions of ss. 17 206.026, 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 18 206.06, 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 19 206.11, 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 20 206.175, 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 21 206.215, 206.22, 206.24, 206.27, 206.28, 206.41, 206.416, 22 206.44, 206.45, 206.48, 206.49, 206.56, 206.59, 206.626, 23 206.87, 206.872, 206.873, 206.8735, 206.874, 206.8741, 24 206.8745, 206.94, and 206.945 shall, as far as practicable, be 25 applicable to the levy and collection of the tax imposed 26 pursuant to this section as if fully set out in this section. 27 Section 21. For the purpose of incorporating the 28 amendment to section 206.44, Florida Statutes, in a reference 29 thereto, paragraph (a) of subsection (2) of section 336.025, 30 Florida Statutes, 1996 Supplement, is reenacted to read: 31 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 336.025 County transportation system; levy of local 2 option fuel tax on motor fuel and diesel fuel.-- 3 (2)(a) The tax levied pursuant to paragraph (1)(a) 4 shall be collected and remitted in the same manner provided by 5 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to 6 paragraph (1)(b) shall be collected and remitted in the same 7 manner provided by s. 206.41(1)(e). The taxes remitted 8 pursuant to this section shall be transferred to the Local 9 Option Fuel Tax Trust Fund, which fund is created for 10 distribution to the county and eligible municipal governments 11 within the county in which the tax was collected and which 12 fund is subject to the service charge imposed in chapter 215. 13 The tax shall be distributed monthly by the department in the 14 same manner provided by s. 336.021(1)(c) and (d). The 15 department has the authority to prescribe and publish all 16 forms upon which reports shall be made to it and other forms 17 and records deemed to be necessary for proper administration 18 and collection of the taxes levied by any county and shall 19 promulgate such rules as may be necessary for the enforcement 20 of this section, which rules shall have the full force and 21 effect of law. The provisions of ss. 206.026, 206.027, 22 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 206.07, 23 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12, 24 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18, 25 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22, 26 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.48, 27 206.49, 206.56, 206.59, 206.626, 206.87, 206.872, 206.873, 28 206.8735, 206.874, 206.8741, 206.94, and 206.945 shall, as far 29 as practicable, be applicable to the levy and collection of 30 taxes imposed pursuant to this section as if fully set out in 31 this section. 18 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 Section 22. Effective July 1, 1999, for the purpose of 2 incorporating the amendment to section 206.44, Florida 3 Statutes, in a reference thereto, paragraph (a) of subsection 4 (2) of section 336.025, Florida Statutes, 1996 Supplement, is 5 reenacted to read: 6 336.025 County transportation system; levy of local 7 option fuel tax on motor fuel and diesel fuel.-- 8 (2)(a) The tax levied pursuant to paragraph (1)(a) 9 shall be collected and remitted in the same manner provided by 10 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to 11 paragraph (1)(b) shall be collected and remitted in the same 12 manner provided by s. 206.41(1)(e). The taxes remitted 13 pursuant to this section shall be transferred to the Local 14 Option Fuel Tax Trust Fund, which fund is created for 15 distribution to the county and eligible municipal governments 16 within the county in which the tax was collected and which 17 fund is subject to the service charge imposed in chapter 215. 18 The tax shall be distributed monthly by the department in the 19 same manner provided by s. 336.021(1)(c) and (d). The 20 department shall deduct the administrative costs incurred by 21 it in collecting, administering, enforcing, and distributing 22 back to the counties the tax, which administrative costs may 23 not exceed 2 percent of collections authorized by this 24 section. The total administrative costs shall be prorated 25 among those counties levying the tax according to the 26 following formula, which shall be revised on July 1 of each 27 year: Two-thirds of the amount deducted shall be based on the 28 county's proportional share of the number of taxpayers who are 29 registered and required to file tax returns on June 30 of the 30 preceding state fiscal year, and one-third of the amount 31 deducted shall be based on the county's share of the total 19 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 amount of the tax collected during the preceding state fiscal 2 year. The department has the authority to prescribe and 3 publish all forms upon which reports shall be made to it and 4 other forms and records deemed to be necessary for proper 5 administration and collection of the taxes levied by any 6 county and shall promulgate such rules as may be necessary for 7 the enforcement of this section, which rules shall have the 8 full force and effect of law. The provisions of ss. 206.026, 9 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 10 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 11 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 12 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 13 206.22, 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 14 206.45, 206.48, 206.49, 206.56, 206.59, 206.626, 206.87, 15 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.94, and 16 206.945 shall, as far as practicable, be applicable to the 17 levy and collection of taxes imposed pursuant to this section 18 as if fully set out in this section. 19 Section 23. Subsection (2) of section 207.007, Florida 20 Statutes, is amended to read: 21 207.007 Offenses; penalties and interest.-- 22 (2) In addition to any other penalties, any delinquent 23 tax shall bear interest at the adjusted rate established 24 pursuant to s. 213.235 of 1 percent per month, or fraction 25 thereof, calculated from the date the tax was due. If the 26 department enters into a cooperative reciprocal agreement 27 under the provisions of s. 207.0281, the department shall 28 collect and distribute all interest due to other jurisdictions 29 at the same rate as if such interest were due to the state. 30 Section 24. Subsection (1) of section 211.076, Florida 31 Statutes, as amended to read: 20 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 211.076 Interest and penalties; failure to pay tax or 2 file return; estimated tax underpayments.-- 3 (1) If any part of the tax imposed by this part is not 4 paid on or before the due date, interest shall be added to the 5 amount due at the adjusted rate established pursuant to s. 6 213.235 of 12 percent per year from the due date until the 7 date of payment. 8 Section 25. Paragraph (d) of subsection (2) of section 9 211.33, Florida Statutes, 1996 Supplement, is amended to read: 10 211.33 Administration of the tax; returns; delinquency 11 penalties and interest; departmental inspections of records.-- 12 (2) 13 (d) In addition to the delinquency penalty provided in 14 paragraph (c), the department shall assess interest on the 15 unpaid balance of any such tax which becomes delinquent, 16 without regard to any extensions, at the adjusted rate 17 established pursuant to s. 213.235 of 12 percent per year, 18 from April 1 to the date of payment. Interest prescribed by 19 this paragraph shall be deemed assessed upon the assessment of 20 the tax and shall be collected and paid in the same manner. 21 Section 26. Subsection (3) of section 212.12, Florida 22 Statutes, 1996 Supplement, is amended to read: 23 212.12 Dealer's credit for collecting tax; penalties 24 for noncompliance; powers of Department of Revenue in dealing 25 with delinquents; brackets applicable to taxable transactions; 26 records required.-- 27 (3) When any dealer, or other person charged herein, 28 fails to remit the tax, or any portion thereof, on or before 29 the day when such tax is required by law to be paid, there 30 shall be added to the amount due interest on at the rate of 1 31 percent per month of the amount due from the date due until 21 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 paid at the adjusted rate established pursuant to s. 213.235. 2 Interest on the delinquent tax shall be calculated beginning 3 on the 21st day of the month following the month for which the 4 tax is due, except as otherwise provided in this part. 5 Section 27. For the purpose of incorporating the 6 amendment to section 212.12, Florida Statutes, 1996 7 Supplement, in a reference thereto, paragraph (e) of 8 subsection (6) of section 193.501, Florida Statutes, is 9 reenacted to read: 10 193.501 Assessment of lands subject to a conservation 11 easement, environmentally endangered lands, or lands used for 12 outdoor recreational or park purposes when land development 13 rights have been conveyed or conservation restrictions have 14 been covenanted.-- 15 (6) The following terms whenever used as referred to 16 in this section have the following meanings unless a different 17 meaning is clearly indicated by the context: 18 (e) "Deferred tax liability" means an amount equal to 19 the difference between the total amount of taxes that would 20 have been due in March in each of the previous years in which 21 the conveyance or covenant was in effect if the property had 22 been assessed under the provisions of s. 193.011 and the total 23 amount of taxes actually paid in those years when the property 24 was assessed under the provisions of this section, plus 25 interest on that difference computed as provided in s. 26 212.12(3). 27 Section 28. For the purpose of incorporating the 28 amendment to section 212.12, Florida Statutes, 1996 29 Supplement, in a reference thereto, subsection (8) of section 30 193.505, Florida Statutes, is reenacted to read: 31 22 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 193.505 Assessment of historically significant 2 property when development rights have been conveyed or 3 historic preservation restrictions have been covenanted.-- 4 (8) For the purposes of this section, the term 5 "deferred tax liability" means an amount equal to the 6 difference between the total amount of taxes which would have 7 been due in March in each of the previous years in which a 8 covenant executed and accepted pursuant to this section was in 9 effect if the property had been assessed under the provisions 10 of s. 193.011 irrespective of any negative impact on fair 11 market value that restrictions imposed pursuant to this 12 section may have caused and the total amount of taxes actually 13 paid in those years, plus interest on that difference computed 14 as provided in s. 212.12(3). 15 Section 29. For the purpose of incorporating the 16 amendment to section 212.12, Florida Statutes, 1996 17 Supplement, in a reference thereto, subsection (7) of section 18 196.1997, Florida Statutes, is reenacted to read: 19 196.1997 Ad valorem tax exemptions for historic 20 properties.-- 21 (7) To qualify for an exemption, the property owner 22 must enter into a covenant or agreement with the governing 23 body for the term for which the exemption is granted. The 24 form of the covenant or agreement must be established by the 25 Department of State and must require that the character of the 26 property, and the qualifying improvements to the property, be 27 maintained during the period that the exemption is granted. 28 The covenant or agreement shall be binding on the current 29 property owner, transferees, and their heirs, successors, or 30 assigns. Violation of the covenant or agreement results in 31 the property owner being subject to the payment of the 23 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 differences between the total amount of taxes which would have 2 been due in March in each of the previous years in which the 3 covenant or agreement was in effect had the property not 4 received the exemption and the total amount of taxes actually 5 paid in those years, plus interest on the difference 6 calculated as provided in s. 212.12(3). 7 Section 30. Section 220.807, Florida Statutes, is 8 amended to read: 9 220.807 Determination of Rate of interest.-- 10 (1) The annual rate of interest applicable to this 11 chapter shall be the adjusted rate established pursuant to s. 12 213.235 by the Executive Director of the Department of Revenue 13 under subsection (2). 14 (2) If the adjusted prime rate charged by banks, 15 rounded to the nearest full percent, during either: 16 (a) The 6-month period ending on September 30 of any 17 calendar year; or 18 (b) The 6-month period ending on March 31 of any 19 calendar year, 20 21 differs from the interest rate in effect on either such date, 22 the Executive Director of the Department of Revenue shall, 23 within 20 days, establish an adjusted rate of interest equal 24 to such adjusted prime rate. 25 (3) An adjusted rate of interest established under 26 this section shall become effective: 27 (a) On January 1 of the succeeding year, if based upon 28 the adjusted prime rate for the 6-month period ending on 29 September 30; or 30 31 24 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 (b) On July 1 of the same calendar year, if based upon 2 the adjusted prime rate for the 6-month period ending on March 3 31. 4 (4) For the purposes of this section, "adjusted prime 5 rate charged by banks" means the average predominant prime 6 rate quoted by commercial banks to large business, as 7 determined by the Board of Governors of the Federal Reserve 8 System. 9 (5) Once established, an adjusted rate of interest 10 shall remain in effect until an adjustment is made under 11 subsection (2). 12 Section 31. Paragraph (c) of subsection (2) of section 13 624.5092, Florida Statutes, is amended to read: 14 624.5092 Administration of taxes; payments.-- 15 (2) 16 (c) When any taxpayer fails to pay any amount due 17 under this section, or any portion thereof, on or before the 18 day when such tax or installment of tax is required by law to 19 be paid, there shall be added to the amount due interest at 20 the adjusted rate established pursuant to s. 213.235 of 12 21 percent per year from the date due until paid. 22 Section 32. (1) The Department of Revenue shall 23 examine the impact of this act and, by January 1, 1998, the 24 executive director of the Department of Revenue shall submit 25 to the Speaker of the House of Representatives, the President 26 of the Senate, and the chairs of the finance and taxation 27 committees of the Legislature a report containing 28 recommendations for the effective and efficient implementation 29 of this act and methods to minimize its fiscal impact. These 30 may include ways to increase voluntary compliance with the 31 state's tax laws. 25 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 477 238-250-97 1 (2) This section shall take effect July 1, 1997. 2 Section 33. Except as otherwise provided therein, this 3 act shall take effect January 1, 1999. 4 5 ***************************************** 6 HOUSE SUMMARY 7 Revises the time periods within which the Department of 8 Revenue and the Department of Business and Professional Regulation may determine and assess the amount of any 9 tax, penalty, or interest due under taxes which they have authority to administer. 10 11 Provides that the annual rate of interest on tax payment deficiencies shall be a floating rate based on the prime 12 rate. 13 Provides for payment of interest on overpayments of taxes 14 administered by the Department of Revenue if refund is not made within a specified period. Provides 15 requirements for refund applications. Revises the time period within which a refund application must be made. 16 17 Provides that no part of the compensation of an employee or agent of the state performing a tax audit shall be 18 based on amounts assessed or collected as a result of the audit. 19 20 Directs the Department of Revenue to examine and report on the impact of the act. 21 22 23 24 25 26 27 28 29 30 31 26