CODING: Words stricken are deletions; words underlined are additions.

House Bill 0677

Florida House of Representatives - 1997 HB 677 By Representative Starks 1 A bill to be entitled 2 An act relating to taxation of intangible 3 personal property; amending s. 199.185, F.S.; 4 increasing the value of property that is 5 exempted from the annual tax of taxpayers who 6 are natural persons; providing an exemption 7 from the annual tax for taxpayers that are not 8 natural persons; excluding accounts receivable 9 from the property subject to taxation; amending 10 s. 199.32, F.S.; providing an exemption from 11 the tax for certain intangible personal 12 property that is secured by mortgage, deed of 13 trust, or other lien upon real estate; 14 repealing ss. 199.012, 199.023, 199.032, 15 199.042, 199.052, 199.057, 199.062, 199.103, 16 199.104, 199.106, 199.133, 199.135, 199.143, 17 199.145, 199.155, 199.175, 199.183, 199.185, 18 199.202, 199.212, 199.218, 199.232, 199.262, 19 199.272, 199.282, 199.292, 199.303, F.S., 20 relating to the tax on intangible personal 21 property; abolishing the tax; providing duties 22 and powers of the Department of Revenue with 23 respect to collection of unpaid taxes; 24 providing effective dates. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Paragraph (k) is added to subsection (1) of 29 section 199.185, Florida Statutes, 1996 Supplement, and 30 subsection (2) of that section is amended, to read: 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 677 204-169-97 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 (k) One-fifth of the accounts receivable owned by a 7 taxpayer on January 1, 1998; two-fifths of the accounts 8 receivable owned by a taxpayer on January 1, 1999; 9 three-fifths of the accounts receivable owned by a taxpayer on 10 January 1, 2000; and four-fifths of the accounts receivable 11 owned by a taxpayer on January 1, 2001. 12 (2)(a) With respect to the first mill of the annual 13 tax, every natural person is entitled each year to an 14 exemption of the first $50,000 $20,000 of the value of 15 property otherwise subject to the said tax on January 1, 1998; 16 $100,000 of the value of property otherwise subject to the tax 17 on January 1, 1999; $150,000 of the value of property 18 otherwise subject to the tax on January 1, 2000; and $200,000 19 of the value of property otherwise subject to the tax on 20 January 1, 2001. A husband and wife filing jointly shall have 21 an exemption of $100,000 $40,000 on January 1, 1998; $200,000 22 on January 1, 1999; $300,000 on January 1, 2000; and $400,000 23 on January 1, 2001. 24 (b) With respect to the annual tax, every taxpayer 25 that is not a natural person is entitled to the following 26 exemption: 27 1. The first $100,000 of the value of property 28 otherwise subject to the tax on January 1, 1998; 29 2. The first $200,000 of the value of property 30 otherwise subject to the tax on January 1, 1999; 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 677 204-169-97 1 3. The first $300,000 of the value of property 2 otherwise subject to the tax on January 1, 2000; and 3 4. The first $400,000 of the value of property 4 otherwise subject to the tax on January 1, 2001. With respect 5 to the last mill of the annual tax, every natural person is 6 entitled each year to an exemption of the first $100,000 of 7 the value of property otherwise subject to said tax. A husband 8 and wife filing jointly shall have an exemption of $200,000. 9 10 Agents and fiduciaries, other than guardians and custodians 11 under a gifts-to-minors act, filing as such may not claim this 12 exemption on behalf of their principals or beneficiaries; 13 however, if the principal or beneficiary returns the property 14 held by the agent or fiduciary and is a natural person, the 15 principal or beneficiary may claim the exemption. No taxpayer 16 shall be entitled to more than one exemption under this 17 subsection paragraph (a) and one exemption under paragraph 18 (b). This exemption shall not apply to that intangible 19 personal property described in s. 199.023(1)(d). 20 Section 2. Section 199.032, Florida Statutes, is 21 amended to read: 22 199.032 Levy of annual tax.--An annual tax of 2 mills 23 is hereby imposed on each dollar of the just valuation of all 24 intangible personal property which has a taxable situs in this 25 state, except for notes and other obligations for the payment 26 of money, other than bonds, which are secured by mortgage, 27 deed of trust, or other lien upon real property situated in 28 the state. This tax shall be assessed and collected as 29 provided in this chapter. The first $100,000 of the value of 30 the property subject to the tax is exempt on January 1, 1998; 31 the first $200,000 of the value of the property subject to the 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 677 204-169-97 1 tax is exempt on January 1, 1999; the first $300,000 of the 2 value of property subject to the tax is exempt on January 1, 3 2000; and the first $400,000 of the value of property subject 4 to the tax is exempt on January 1, 2001. 5 Section 3. Effective January 1, 2002, sections 6 199.012, 199.023, 199.032, 199.042, 199.052, 199.057, 199.062, 7 199.104, 199.106, 199.133, 199.143, 199.145, 199.155, 199.175, 8 199.202, 199.212, 199.218, 199.232, 199.282, 199.292, and 9 199.303, Florida Statutes; section 199.103, F.S., as amended 10 by section 1 of chapter 95-244, Laws of Florida; section 11 199.135, Florida Statutes, as amended by section 1480 of 12 chapter 95-147, Laws of Florida; section 199.183, Florida 13 Statutes, as amended by section 2 of chapter 96-283, Laws of 14 Florida; section 199.185, Florida Statutes, as amended by 15 section 1 of chapter 96-283, Laws of Florida, section 13 of 16 chapter 96-320, Laws of Florida, and this act; section 17 199.262, Florida Statutes, as amended by section 1046 of 18 chapter 95-147, Laws of Florida; and section 199.272, Florida 19 Statutes, as amended by section 1047 of chapter 95-147, Laws 20 of Florida, are repealed. 21 Section 4. The Department of Revenue is authorized to 22 take any action after January 1, 2002, which it was authorized 23 to take before that date to collect any tax that was due 24 before that date under chapter 199, Florida Statutes, and that 25 was unpaid, underpaid, or otherwise avoided. 26 Section 5. Except as otherwise expressly provided in 27 this act, this act shall take effect January 1, 1998. 28 29 30 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 677 204-169-97 1 ***************************************** 2 SENATE SUMMARY 3 Provides exemptions from the intangibles tax which increase every year beginning January 1, 1998, and 4 culminate in the complete abolition of the tax effective January 1, 2002. Allows the Department of Revenue to 5 take action to collect after the latter date taxes that were due but unpaid before that date. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5