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House Bill 0081c1

Florida House of Representatives - 1997 CS/HB 81 By the Committee on Environmental Protection and Representatives Mackey and Sembler 1 A bill to be entitled 2 An act relating to taxation of fuels; amending 3 s. 206.01, F.S.; revising the definition of 4 "reseller"; amending s. 206.026, F.S.; 5 including blenders, carriers, and terminal 6 operators in provisions which prohibit certain 7 persons from holding a license; amending s. 8 206.27, F.S.; authorizing the Department of 9 Revenue to make certain audit information 10 available to the Department of Highway Safety 11 and Motor Vehicles and providing for 12 application of confidentiality and penalty 13 provisions; amending s. 206.41, F.S.; revising 14 the information required on the sales invoice 15 executed in connection with a sale of motor or 16 diesel fuel for which the purchaser claims a 17 refund; authorizing submission of a schedule of 18 transactions in lieu of invoices with a refund 19 application; revising the department's 20 authority to refuse to grant a refund; revising 21 the persons authorized to execute an invoice; 22 including blenders in provisions relating to 23 records and inspection; providing liability of 24 terminal suppliers, importers, blenders, 25 exporters, and wholesalers with respect to 26 false or fraudulent refunds; creating s. 27 206.413, F.S.; specifying the persons liable 28 for payment of the taxes imposed by s. 206.41, 29 F.S.; specifying conditions under which Florida 30 law applies when motor fuel is withdrawn from a 31 terminal outside the state or transfer of 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 ownership of motor fuel occurs outside the 2 state; providing penalties for willfully 3 evading or attempting to evade or defeat 4 payment of tax when specified circumstances 5 apply and providing liability for penalties; 6 amending s. 206.414, F.S.; revising provisions 7 which specify when certain taxes shall be 8 collected and remitted by wholesalers and 9 terminal suppliers; amending s. 206.43, F.S.; 10 revising provisions relating to conditions 11 under which a terminal supplier's or importer's 12 allowance is deductible; amending s. 206.44, 13 F.S.; revising applicability of penalties for 14 failure to report or pay taxes due; amending s. 15 206.874, F.S.; providing that dyed diesel fuel 16 may be purchased for use by a noncommercial 17 vessel; amending s. 206.8745, F.S.; providing 18 restrictions on claims for refund of the excise 19 tax paid on undyed diesel fuel used by a 20 noncommercial vessel; amending s. 206.91, F.S.; 21 revising provisions relating to conditions 22 under which a diesel fuel registrant's 23 allowance is deductible; amending s. 212.05, 24 F.S.; providing for imposition of sales tax on 25 diesel fuel used in a vessel and not taxed 26 under chapter 206, F.S.; amending s. 212.0501, 27 F.S.; revising the definition of "consumption, 28 use, or storage by a trade or business" for 29 purposes of the use tax on diesel fuel 30 purchased for such purposes; revising 31 provisions relating to collection of such tax 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 by licensed sales tax dealers; amending s. 2 212.08, F.S.; providing that the partial sales 3 tax exemption for motor vehicles engaged in 4 interstate commerce applies to common carriers; 5 including diesel fuel placed in certain 6 separate tanks in the exemption; amending ss. 7 336.021 and 336.025, F.S.; revising provisions 8 relating to application of the formula for 9 determining administrative costs of the 10 ninth-cent fuel tax and the local option fuel 11 taxes; providing effective dates for 12 reimposition of certain local option fuel 13 taxes; providing effective dates. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (29) of section 206.01, Florida 18 Statutes, 1996 Supplement, is amended to read: 19 206.01 Definitions.--As used in this chapter: 20 (29) "Reseller" means any person who purchases in the 21 state tax-paid fuel from a terminal supplier or wholesaler and 22 who is authorized by the terminal supplier or wholesaler to 23 resell such fuel to retail dealers or end users only. 24 Section 2. Subsection (1) of section 206.026, Florida 25 Statutes, as amended by chapter 95-417, Laws of Florida, is 26 amended to read: 27 206.026 Certain persons prohibited from holding a 28 terminal supplier, importer, exporter, blender, carrier, 29 terminal operator, or wholesaler license; suspension and 30 revocation.-- 31 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 (1) No corporation, except a publicly held corporation 2 regularly traded on a national securities exchange and not 3 over the counter, general or limited partnership, sole 4 proprietorship, business trust, joint venture or 5 unincorporated association, or other business entity shall 6 hold a terminal supplier, importer, exporter, blender, 7 carrier, terminal operator, or wholesaler license in this 8 state if any one of the persons or entities specified in 9 paragraph (a) has been determined by the department not to be 10 of good moral character or has been convicted of any offense 11 specified in paragraph (b): 12 (a)1. The licenseholder. 13 2. The sole proprietor of the licenseholder. 14 3. A corporate officer or director of the 15 licenseholder. 16 4. A general or limited partner of the licenseholder. 17 5. A trustee of the licenseholder. 18 6. A member of an unincorporated association 19 licenseholder. 20 7. A joint venturer of the licenseholder. 21 8. The owner of any equity interest in the 22 licenseholder, whether as a common shareholder, general or 23 limited partner, voting trustee, or trust beneficiary. 24 9. An owner of any interest in the license or 25 licenseholder, including any immediate family member of the 26 owner, or holder of any debt, mortgage, contract, or 27 concession from the licenseholder, who by virtue thereof is 28 able to control the business of the licenseholder. 29 (b)1. A felony in this state. 30 2. Any felony in any other state which would be a 31 felony if committed in this state under the laws of Florida. 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 3. Any felony under the laws of the United States. 2 Section 3. Subsection (2) of section 206.27, Florida 3 Statutes, 1996 Supplement, is amended to read: 4 206.27 Records and files as public records.-- 5 (2) Nothing herein shall be construed as requiring the 6 department to provide as a public record any information 7 concerning audits in progress or those records and files of 8 the department described in this section which are currently 9 the subject of pending investigation by the Department of 10 Revenue or the Florida Department of Law Enforcement. It is 11 specifically provided that the foregoing information shall be 12 exempt from the provisions of s. 119.07(1) and shall be 13 considered confidential pursuant to s. 213.053; however, the 14 department may make available to the executive director of the 15 Department of Highway Safety and Motor Vehicles or his or her 16 designee, exclusively for official purposes in administering 17 chapter 207, any information concerning any audit in progress, 18 and the provisions of s. 213.053(7) requiring a written 19 agreement and maintenance of confidentiality by the recipient, 20 and the penalty for breach of confidentiality, shall apply if 21 the department makes such information available. Any officer, 22 employee, or former officer or employee of the department who 23 divulges any such information in any manner except for such 24 official purposes or under s. 213.053 is guilty of a 25 misdemeanor of the first degree, punishable as provided in s. 26 775.082 or s. 775.083. 27 Section 4. Paragraphs (b), (e), and (f) of subsection 28 (5) of section 206.41, Florida Statutes, 1996 Supplement, are 29 amended to read: 30 206.41 State taxes imposed on motor fuel.-- 31 (5) 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 (b)1. When motor fuel or diesel fuel is sold to a 2 person who claims to be entitled to a refund under subsection 3 (4), the seller of such motor fuel or diesel fuel shall make 4 out a sales invoice, which shall contain the following 5 information: 6 a. The name, post office address, and residence 7 address of the purchaser. 8 b. The number of gallons purchased. 9 c. The date on which the purchase was made. 10 d. The price paid for the motor fuel or diesel fuel. 11 e. The name and place of business of the seller of the 12 motor fuel or diesel fuel. 13 f. The license number, or other identification number, 14 of the motor vehicle or boat of the purchaser. 15 g. The Department of Environmental Protection facility 16 number for the seller's location. 17 2. The sales invoice shall be retained by the 18 purchaser until the department's power to issue an assessment 19 with respect to such tax has terminated pursuant to s. 20 95.091(3) for attachment to his or her application for a 21 refund, as a part thereof. In lieu of original sales invoices, 22 a purchaser may submit a detailed schedule of individual 23 transactions which includes the information required by 24 subparagraph 1. along with the refund application. No refund 25 will be allowed unless the seller has executed such an invoice 26 and unless proof of payment of the taxes for which the refund 27 is claimed can be provided to the department upon request is 28 attached. The department may refuse to grant a refund in 29 whole or in part if the schedule or an invoice is incomplete 30 and fails to contain the full information required in this 31 paragraph. 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 3. No person may execute a sales invoice, as described 2 in subparagraph 1., except a terminal supplier, importer, 3 exporter, or wholesaler, reseller, or retail dealer or a duly 4 authorized agent thereof. No refund invoice may be executed 5 for a purchase from a retail service station. 6 4. When motor fuel or diesel fuel is sold by a retail 7 dealer to a person who claims to be entitled to a refund under 8 subsection (4), a detailed schedule of individual purchase 9 transactions including name, address, Department of 10 Environmental Protection facility number of the station, date 11 of purchase, invoice number, and number of gallons purchased 12 may be provided the department by the permitted refund 13 applicant in lieu of the original invoices. Notwithstanding 14 provisions of this paragraph to the contrary, the department 15 has authority to designate certain retail service stations as 16 agents of terminal suppliers, importers, exporters, or 17 wholesalers when no terminal suppliers, importers, exporters, 18 or wholesalers are available. 19 5. Notwithstanding provisions of this paragraph to the 20 contrary, refunds to a school district for fuel consumed by 21 school buses operated for the district by private contractors 22 shall be based on an estimate of taxes paid. The estimate 23 shall be determined quarterly by dividing the total miles 24 traveled by such vehicles for school purposes by their average 25 miles per gallon, as determined by the department, and 26 multiplying the result by the applicable tax rate per gallon. 27 It is the responsibility of the school district to provide 28 information relevant to this determination. 29 (e)1. Each terminal supplier, importer, blender, 30 exporter, or wholesaler shall, in accordance with the 31 requirements of the department, keep at his or her principal 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 place of business in this state or at the bulk plant where the 2 sale is made a complete record of or duplicate sales tickets 3 for all motor fuel or diesel fuel sold by him or her for which 4 a refund provided in this section may be claimed, which 5 records must give the date of each such sale, the number of 6 gallons sold, the name of the person to whom sold, and the 7 sale price. A terminal supplier, importer, blender, exporter, 8 or wholesaler, or his or her agent or employee, may not 9 acknowledge or assist in the preparation of any false or 10 fraudulent claim for tax refund. Any terminal supplier, 11 importer, blender, exporter, or wholesaler, or his or her 12 agent or employee, that has knowledge or should have had 13 knowledge that a refund is false or fraudulent shall in 14 addition to other penalties be jointly liable with the refund 15 recipient to the state for the tax improperly refunded. 16 2. Every person to whom a refund permit has been 17 issued under this subsection shall, in accordance with the 18 requirements of the department, keep at his or her residence 19 or principal place of business in this state a record of each 20 purchase of motor fuel or diesel fuel from a terminal 21 supplier, importer, blender, exporter, or wholesaler, or his 22 or her authorized agent; the number of gallons purchased; the 23 name of the seller; the date of the purchase; and the sale 24 price. 25 3. The records required to be kept under this 26 paragraph are subject, at all reasonable hours, to audit or 27 inspection by the department or by any person duly authorized 28 by the department. Such records shall be preserved and may not 29 be destroyed until the period specified in s. 215.26(2) has 30 elapsed. 31 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 4. The department shall keep a permanent record of the 2 amount of refund claimed and paid to each claimant. Such 3 records are open to public inspection. 4 (f) Agents of the department are authorized to go upon 5 the premises of any permitholder or terminal supplier, 6 importer, blender, exporter, or wholesaler, or duly authorized 7 agent thereof, to make inspection to ascertain any matter 8 connected with the operation of this subsection or the 9 enforcement hereof. However, no agent may enter the dwelling 10 of any person without the consent of the occupant or authority 11 from a court of competent jurisdiction. 12 Section 5. Section 206.413, Florida Statutes, is 13 created to read: 14 206.413 Liability for tax; interstate agreement; 15 penalties.-- 16 (1) The person liable for payment of the taxes imposed 17 by s. 206.41 shall be as follows: 18 (a) Every position holder shall pay taxes on the 19 removal of motor fuel from a terminal as described by s. 20 206.41. In an exchange agreement between two licensed 21 terminal suppliers, the receiving party shall be liable as the 22 position holder if the receiving party is identified to the 23 terminal operator by the delivering party. 24 (b) Every terminal supplier shall pay taxes on the 25 removal of motor fuel from a refinery as specified by s. 26 206.41. 27 (c) Every importer shall pay taxes on the entry into 28 this state as specified by s. 206.41. 29 (d) Any person that produces blended motor fuel 30 outside the bulk transfer or terminal system shall pay taxes 31 as provided for by s. 206.41. 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 (e) Any person using motor fuel upon which the tax 2 required by s. 206.41 has not been paid and which is not 3 exempted by this part is liable for the backup tax imposed by 4 s. 206.873. 5 (f) The seller of motor fuel is jointly and severally 6 liable for the backup tax imposed by s. 206.873 if the seller 7 knows or has reason to know that the motor fuel will be used 8 in any nonexempt use. 9 (g) The terminal operator is jointly and severally 10 liable for the taxes imposed by s. 206.41 if: 11 1. The position holder with respect to the motor fuel 12 is a person other than the terminal operator and is not a 13 terminal supplier; or 14 2. The terminal operator has not met the conditions 15 specified under paragraph (h). 16 (h) A terminal operator is not liable for taxes 17 imposed by s. 206.41 if at the time of the removal all the 18 following apply: 19 1. The terminal operator is a terminal supplier. 20 2. The terminal operator has an unexpired notification 21 certificate from the position holder as required by the 22 Internal Revenue Service. 23 3. The terminal operator has no reason to believe that 24 any information in the certificate is false. 25 (2) A licensed terminal supplier who is a position 26 holder in a terminal located outside of this state or a seller 27 transferring ownership of motor fuel outside of this state 28 destined for this state agrees to be subject to the laws of 29 this state and comply with the provisions of this chapter in 30 the same manner as if the motor fuel were withdrawn from a 31 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 terminal in this state or the transfer of ownership occurred 2 in this state. 3 (3)(a) Any person who willfully evades or attempts to 4 evade or defeat the payment of the fuel taxes imposed by this 5 part shall be penalized in the amount of $10 for every gallon 6 of motor fuel involved or $1,000, whichever is greater, for 7 the first offense. The penalty shall increase with subsequent 8 violations by multiplying the penalty amount by the number of 9 prior violations. The penalty applies in any of the following 10 circumstances: 11 1. If any motor fuel is sold or held for sale by any 12 person for any use that is taxable and such person knows or 13 has reason to know that the taxes due under this part have not 14 been paid to the state, and that person fails to pay the taxes 15 due directly to the state. 16 2. If any motor fuel is held for use or used by any 17 person for a use other than a nontaxable use and such person 18 knew, or had reason to know, that the taxes due under this 19 part have not been paid to the state, and that person fails to 20 pay the taxes due directly to the state. 21 3. If any person willfully, with intent to evade tax, 22 alters sales or shipping documents or collects and fails to 23 remit any taxes due under this part. 24 (b) Any business entity and each officer, employee, or 25 agent of the entity who willfully participated in any act 26 giving rise to the penalty is jointly and severally liable 27 with the entity for the penalty. 28 Section 6. Subsection (1) of section 206.414, Florida 29 Statutes, is amended to read: 30 206.414 Collection of certain taxes; prohibited 31 credits and refunds.-- 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 (1) The taxes imposed by s. 206.41(1)(d), (e), and (f) 2 shall be collected and remitted by licensed wholesalers and 3 terminal suppliers upon each sale, delivery, or consignment to 4 retail dealers, resellers, and end users. 5 Section 7. Paragraph (a) of subsection (1) of section 6 206.43, Florida Statutes, 1996 Supplement, is amended to read: 7 206.43 Terminal supplier, importer, exporter, blender, 8 and wholesaler to report to department monthly; 9 deduction.--The taxes levied and assessed as provided in this 10 part shall be paid to the department monthly in the following 11 manner: 12 (1)(a) Taxes are due on the first day of the 13 succeeding month and shall be paid on or before the 20th day 14 of each month. The terminal supplier, importer, exporter, 15 blender, or wholesaler shall mail to the department verified 16 reports on forms prescribed by the department and shall at the 17 same time pay to the department the amount of tax computed to 18 be due. However, if the 20th day falls on a Saturday, a 19 Sunday, or a federal or state legal holiday, returns shall be 20 accepted if postmarked on the next succeeding workday. The 21 terminal supplier or importer shall deduct from the amount of 22 tax shown by the report to be payable an amount equivalent to 23 .2 percent of the tax on motor fuels imposed by s. 24 206.41(1)(a), (b), (c), and (g), which deduction is hereby 25 allowed to the terminal supplier or importer on account of 26 services and expenses in complying with the provisions of the 27 law. The allowance on taxable gallons of motor fuel sold to 28 persons licensed under this chapter shall not be deductible 29 unless the terminal supplier or importer has allowed 50 30 percent of the allowance provided by this section to a the 31 licensed purchaser with a valid wholesaler or terminal 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 supplier license. However, this allowance shall not be 2 deductible unless payment of the tax is made on or before the 3 20th day of the month as herein required. The United States 4 post office date stamped on the envelope in which the report 5 is submitted shall be considered as the date the report is 6 received by the department. Nothing in this subsection shall 7 be construed to authorize a deduction from the constitutional 8 fuel tax or fuel sales tax. 9 Section 8. Subsection (1) of section 206.44, Florida 10 Statutes, as amended by chapter 95-417, Laws of Florida, is 11 amended to read: 12 206.44 Penalty and interest for failure to report on 13 time; penalty and interest on tax deficiencies.-- 14 (1) If any person terminal supplier, importer, 15 exporter, or wholesaler fails to make a report or pay the 16 taxes due as required by this chapter, the department shall 17 add a penalty in the amount of 10 percent of any unpaid tax if 18 the failure is for not more than 1 month, with an additional 19 10 percent of any unpaid tax for each additional month or 20 fraction thereof during which the failure continues. However, 21 such penalty may not exceed 50 percent in the aggregate of any 22 unpaid tax. Furthermore, in no event may the penalty assessed 23 be less than $10. The department shall collect the tax, 24 together with the penalty and costs, in the same manner as 25 other delinquent taxes are collected. 26 Section 9. Paragraph (m) is added to subsection (3) of 27 section 206.874, Florida Statutes, 1996 Supplement, to read: 28 206.874 Exemptions.-- 29 (3) Dyed diesel fuel may be purchased and used only 30 for the following purposes: 31 (m) Use by a noncommercial vessel. 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 Section 10. Subsection (1) of section 206.8745, 2 Florida Statutes, 1996 Supplement, is amended, and subsection 3 (7) is added to said section, to read: 4 206.8745 Credits and refund claims.-- 5 (1) Except as provided in subsections subsection (2) 6 and (7), any person who purchases undyed, tax-paid diesel fuel 7 who has paid the tax imposed by this part to the seller may 8 file a claim for refund of such taxes paid as provided in s. 9 215.26 if the fuel is used for an exempt purpose identified in 10 s. 206.874(3). 11 (7) Any person who purchases undyed diesel fuel for 12 use by a noncommercial vessel who has paid the tax imposed by 13 this part to the seller may claim a refund of such taxes paid 14 subject to the following restrictions: 15 (a) The purchaser may make one claim for refund per 16 calender year. 17 (b) The annual refund claim shall be submitted prior 18 to April 1 of the year subsequent to the year in which the tax 19 was paid. 20 (c) No refund shall be allowed on purchases of less 21 than 2,500 gallons per calendar year. 22 (d) The purchaser shall submit, with the refund 23 request, original purchase invoices showing the taxes paid. 24 (e) The purchaser shall remit as an offset to the 25 refund the sales tax due under chapter 212 based on the 26 purchase price of the fuel net of the state tax refunded. 27 Section 11. Subsection (1) of section 206.91, Florida 28 Statutes, as amended by chapter 95-417, Laws of Florida, is 29 amended to read: 30 206.91 Tax reports; computation and payment of tax.-- 31 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 (1) For the purpose of determining the amount of taxes 2 imposed by s. 206.87, each diesel fuel registrant shall, not 3 later than the 20th day of each calendar month, mail to the 4 department, on forms prescribed by the department, monthly 5 reports which shall show such information on inventories, 6 purchases, nontaxable disposals, and taxable sales in gallons 7 of diesel fuel and alternative fuel, for the preceding 8 calendar month as may be required by the department. However, 9 if the 20th day falls on a Saturday, a Sunday, or a federal or 10 state legal holiday, returns shall be accepted if postmarked 11 on the next succeeding workday. The reports shall contain or 12 be verified by a written declaration that such report is made 13 under the penalties of perjury. The diesel fuel registrant 14 shall deduct from the amount of taxes shown by the report to 15 be payable an amount equivalent to .67 percent of the taxes on 16 diesel fuel imposed by s. 206.87(1)(a) and (e), which 17 deduction is hereby allowed to the diesel fuel registrant on 18 account of services and expenses in complying with the 19 provisions of this part. The allowance on taxable gallons of 20 diesel fuel sold to persons licensed under this chapter shall 21 not be deductible unless the diesel fuel registrant has 22 allowed 50 percent of the allowance provided by this section 23 to a the licensed purchaser with a valid wholesaler or 24 terminal supplier license. This allowance shall not be 25 deductible unless payment of the taxes is made on or before 26 the 20th day of the month as herein required. Nothing in this 27 subsection shall be construed to authorize a deduction from 28 the constitutional fuel tax or fuel sales tax. 29 Section 12. Paragraph (m) is added to subsection (1) 30 of section 212.05, Florida Statutes, 1996 Supplement, to read: 31 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 212.05 Sales, storage, use tax.--It is hereby declared 2 to be the legislative intent that every person is exercising a 3 taxable privilege who engages in the business of selling 4 tangible personal property at retail in this state, including 5 the business of making mail order sales, or who rents or 6 furnishes any of the things or services taxable under this 7 chapter, or who stores for use or consumption in this state 8 any item or article of tangible personal property as defined 9 herein and who leases or rents such property within the state. 10 (1) For the exercise of such privilege, a tax is 11 levied on each taxable transaction or incident, which tax is 12 due and payable as follows: 13 (m) At the rate of 6 percent of the sales price of 14 each gallon of diesel fuel not taxed under chapter 206 15 purchased for use in a vessel. 16 Section 13. Section 212.0501, Florida Statutes, is 17 amended to read: 18 212.0501 Tax on diesel fuel for business purposes; 19 purchase, storage, and use.-- 20 (1) It is declared to be the legislative intent that 21 every person is exercising a taxable privilege who purchases 22 any diesel fuel as defined in chapter 206 for use by that 23 person in a trade or business. 24 (2) Each person who purchases diesel fuel for 25 consumption, use, or storage by a trade or business shall 26 register as a dealer and remit a use tax, at the rate of 6 27 percent, on the total cost price of diesel fuel consumed. 28 (3) For purposes of this section, "consumption, use, 29 or storage by a trade or business" does not include those uses 30 of diesel fuel specifically exempt on account of residential 31 purposes, or on account of agricultural purposes as defined in 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 s. 212.08(5), or the purchase or storage of diesel fuel held 2 for resale. 3 (4) Except as otherwise provided in s. 212.05(1)(m), a 4 No licensed sales tax dealer may elect shall be required to 5 collect such tax pursuant to this chapter on all sales to each 6 any person who purchases diesel fuel for consumption, use, or 7 storage by a trade or business. When the licensed sales tax 8 dealer has not elected to collect such tax on all such sales, 9 the purchaser or ultimate consumer shall be liable for the 10 payment of tax directly to the state. 11 (5) Diesel fuel upon which the fuel taxes pursuant to 12 chapter 206 have been paid is exempt from the tax imposed by 13 this chapter. Liquefied petroleum gas or other fuel used to 14 heat a structure in which started pullets or broilers are 15 raised is exempt from the tax imposed by this chapter; 16 however, such exemption shall not be allowed unless the 17 purchaser or lessee signs a certificate stating that the fuel 18 to be exempted is for the exclusive use designated herein. 19 (6) All taxes required to be paid on fuel used in 20 self-propelled off-road equipment shall be deposited in the 21 Fuel Tax Collection Trust Fund, to be distributed, after 22 deduction of the general revenue service charge pursuant to s. 23 215.20, to the State Transportation Trust Fund. The 24 department shall, each month, make a transfer, from general 25 revenue collections, equal to such use tax reported on 26 dealers' sales and use tax returns. 27 Section 14. Paragraph (b) of subsection (9) of section 28 212.08, Florida Statutes, 1996 Supplement, is amended to read: 29 212.08 Sales, rental, use, consumption, distribution, 30 and storage tax; specified exemptions.--The sale at retail, 31 the rental, the use, the consumption, the distribution, and 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 the storage to be used or consumed in this state of the 2 following are hereby specifically exempt from the tax imposed 3 by this part. 4 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES 5 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.-- 6 (b) Motor vehicles which are engaged in interstate 7 commerce as common carriers, and parts thereof, used to 8 transport persons or property in interstate or foreign 9 commerce are subject to tax imposed in this chapter only to 10 the extent provided herein. The basis of the tax shall be the 11 ratio of intrastate mileage to interstate or foreign mileage 12 traveled by the carrier's motor vehicles which were used in 13 interstate or foreign commerce and which had at least some 14 Florida mileage during the previous fiscal year of the 15 carrier. Such ratio is to be determined at the close of the 16 carrier's fiscal year. This ratio shall be applied each month 17 to the total purchases of such motor vehicles and parts 18 thereof which are used in this state to establish that portion 19 of the total used and consumed in intrastate movement and 20 subject to tax under this part. Motor vehicles which are 21 engaged in interstate commerce, and parts thereof, used to 22 transport persons or property in interstate and foreign 23 commerce are hereby determined to be susceptible to a distinct 24 and separate classification for taxation under the provisions 25 of this part. Motor vehicles and parts thereof used 26 exclusively in intrastate commerce do not qualify for the 27 proration of tax. For purposes of this paragraph, parts of a 28 motor vehicle engaged in interstate commerce include a 29 separate tank not connected to the fuel supply system of the 30 motor vehicle into which diesel fuel is placed to operate a 31 refrigeration unit or other equipment. 18 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 Section 15. Effective July 1, 1999, paragraph (a) of 2 subsection (2) of section 336.021, Florida Statutes, 1996 3 Supplement, as amended by section 17 of chapter 96-397, Laws 4 of Florida, is amended to read: 5 336.021 County transportation system; levy of 6 ninth-cent fuel tax on motor fuel and diesel fuel.-- 7 (2)(a) The tax collected by the department pursuant to 8 subsection (1) shall be transferred to the Ninth-cent Fuel Tax 9 Trust Fund, which fund is created for distribution to the 10 counties pursuant to paragraph (1)(d). The department shall 11 deduct the administrative costs incurred by it in collecting, 12 administering, enforcing, and distributing back to the 13 counties the tax, which administrative costs may not exceed 2 14 percent of collections authorized by this section. The total 15 administrative cost shall be prorated among those counties 16 levying the tax according to the following formula, which 17 shall be revised on July 1 of each year: Two-thirds of the 18 amount deducted shall be based on the county's proportional 19 share of the number of dealers taxpayers who are registered 20 for purposes of chapter 212 and required to file tax returns 21 on June 30th of the preceding state fiscal year, and one-third 22 of the amount deducted shall be based on the county's share of 23 the total amount of the tax collected during the preceding 24 state fiscal year. The department has the authority to 25 prescribe and publish all forms upon which reports shall be 26 made to it and other forms and records deemed to be necessary 27 for proper administration and collection of the tax levied by 28 any county and shall adopt rules necessary to enforce this 29 section, which rules shall have the full force and effect of 30 law. The provisions of ss. 206.026, 206.027, 206.028, 206.051, 31 206.052, 206.054, 206.055, 206.06, 206.07, 206.075, 206.08, 19 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 206.09, 206.095, 206.10, 206.11, 206.12, 206.13, 206.14, 2 206.15, 206.16, 206.17, 206.175, 206.18, 206.199, 206.20, 3 206.204, 206.205, 206.21, 206.215, 206.22, 206.24, 206.27, 4 206.28, 206.41, 206.416, 206.44, 206.45, 206.48, 206.49, 5 206.56, 206.59, 206.626, 206.87, 206.872, 206.873, 206.8735, 6 206.874, 206.8741, 206.8745, 206.94, and 206.945 shall, as far 7 as practicable, be applicable to the levy and collection of 8 the tax imposed pursuant to this section as if fully set out 9 in this section. 10 Section 16. Paragraphs (a) and (b) of subsection (1) 11 of section 336.025, Florida Statutes, 1996 Supplement, are 12 amended to read: 13 336.025 County transportation system; levy of local 14 option fuel tax on motor fuel and diesel fuel.-- 15 (1)(a) In addition to other taxes allowed by law, 16 there may be levied as provided in ss. 206.41(1)(e) and 17 206.87(1)(c) a 1-cent, 2-cent, 3-cent, 4-cent, 5-cent, or 18 6-cent local option fuel tax upon every gallon of motor fuel 19 and diesel fuel sold in a county and taxed under the 20 provisions of part I or part II of chapter 206. 21 1. The tax shall be levied before July 1 to be 22 effective January 1 of the following year for a period not to 23 exceed 30 years, and the applicable method of distribution 24 shall be established pursuant to subsection (3) or subsection 25 (4). However, levies of the tax which were in effect on July 26 1, 1996, and which expire on August 31 of any year may be 27 reimposed effective September 1 of the year of expiration. 28 Upon expiration, the tax may be relevied provided that a 29 redetermination of the method of distribution is made as 30 provided in this section. 31 20 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 2. County and municipal governments shall utilize 2 moneys received pursuant to this paragraph only for 3 transportation expenditures. 4 3. Any tax levied pursuant to this paragraph may be 5 extended on a majority vote of the governing body of the 6 county. A redetermination of the method of distribution shall 7 be established pursuant to subsection (3) or subsection (4), 8 if, after July 1, 1986, the tax is extended or the tax rate 9 changed, for the period of extension or for the additional 10 tax. 11 (b) In addition to other taxes allowed by law, there 12 may be levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent, 13 3-cent, 4-cent, or 5-cent local option fuel tax upon every 14 gallon of motor fuel sold in a county and taxed under the 15 provisions of part I of chapter 206. The tax shall be levied 16 by an ordinance adopted by a majority plus one vote of the 17 membership of the governing body of the county or by 18 referendum. 19 1. The tax shall be levied before July 1, to be 20 effective January 1 of the following year. However, levies of 21 the tax which were in effect on July 1, 1996, and which expire 22 on August 31 of any year may be reimposed effective September 23 1 of the year of expiration. 24 2. The county may, prior to levy of the tax, establish 25 by interlocal agreement with one or more municipalities 26 located therein, representing a majority of the population of 27 the incorporated area within the county, a distribution 28 formula for dividing the entire proceeds of the tax among 29 county government and all eligible municipalities within the 30 county. If no interlocal agreement is adopted before the 31 effective date of the tax, tax revenues shall be distributed 21 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 pursuant to the provisions of subsection (4). If no 2 interlocal agreement exists, a new interlocal agreement may be 3 established prior to June 1 of any year pursuant to this 4 subparagraph. However, any interlocal agreement agreed to 5 under this subparagraph after the initial levy of the tax or 6 change in the tax rate authorized in this section shall under 7 no circumstances materially or adversely affect the rights of 8 holders of outstanding bonds which are backed by taxes 9 authorized by this paragraph, and the amounts distributed to 10 the county government and each municipality shall not be 11 reduced below the amount necessary for the payment of 12 principal and interest and reserves for principal and interest 13 as required under the covenants of any bond resolution 14 outstanding on the date of establishment of the new interlocal 15 agreement. 16 3. County and municipal governments shall utilize 17 moneys received pursuant to this paragraph only for 18 transportation expenditures needed to meet the requirements of 19 the capital improvements element of an adopted comprehensive 20 plan. 21 Section 17. Effective July 1, 1999, paragraph (a) of 22 subsection (2) of section 336.025, Florida Statutes, 1996 23 Supplement, as amended by section 19 of chapter 96-397, Laws 24 of Florida, is amended to read: 25 336.025 County transportation system; levy of local 26 option fuel tax on motor fuel and diesel fuel.-- 27 (2)(a) The tax levied pursuant to paragraph (1)(a) 28 shall be collected and remitted in the same manner provided by 29 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to 30 paragraph (1)(b) shall be collected and remitted in the same 31 manner provided by s. 206.41(1)(e). The taxes remitted 22 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 pursuant to this section shall be transferred to the Local 2 Option Fuel Tax Trust Fund, which fund is created for 3 distribution to the county and eligible municipal governments 4 within the county in which the tax was collected and which 5 fund is subject to the service charge imposed in chapter 215. 6 The tax shall be distributed monthly by the department in the 7 same manner provided by s. 336.021(1)(c) and (d). The 8 department shall deduct the administrative costs incurred by 9 it in collecting, administering, enforcing, and distributing 10 back to the counties the tax, which administrative costs may 11 not exceed 2 percent of collections authorized by this 12 section. The total administrative costs shall be prorated 13 among those counties levying the tax according to the 14 following formula, which shall be revised on July 1 of each 15 year: Two-thirds of the amount deducted shall be based on the 16 county's proportional share of the number of dealers taxpayers 17 who are registered for purposes of chapter 212 and required to 18 file tax returns on June 30 of the preceding state fiscal 19 year, and one-third of the amount deducted shall be based on 20 the county's share of the total amount of the tax collected 21 during the preceding state fiscal year. The department has the 22 authority to prescribe and publish all forms upon which 23 reports shall be made to it and other forms and records deemed 24 to be necessary for proper administration and collection of 25 the taxes levied by any county and shall promulgate such rules 26 as may be necessary for the enforcement of this section, which 27 rules shall have the full force and effect of law. The 28 provisions of ss. 206.026, 206.027, 206.028, 206.051, 206.052, 29 206.054, 206.055, 206.06, 206.07, 206.075, 206.08, 206.09, 30 206.095, 206.10, 206.11, 206.12, 206.13, 206.14, 206.15, 31 206.16, 206.17, 206.175, 206.18, 206.199, 206.20, 206.204, 23 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 81 194-100-97 1 206.205, 206.21, 206.215, 206.22, 206.24, 206.27, 206.28, 2 206.41, 206.416, 206.44, 206.45, 206.48, 206.49, 206.56, 3 206.59, 206.626, 206.87, 206.872, 206.873, 206.8735, 206.874, 4 206.8741, 206.94, and 206.945 shall, as far as practicable, be 5 applicable to the levy and collection of taxes imposed 6 pursuant to this section as if fully set out in this section. 7 Section 18. Except as otherwise provided herein, this 8 act shall take effect upon becoming a law. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 24