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House Bill 0081er

ENROLLED 1997 Legislature CS/CS/HB 81 1 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of the taxes imposed by s. 206.41, 29 F.S.; specifying conditions under which Florida 30 law applies when motor fuel is withdrawn from a 31 terminal outside the state or transfer of 1 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 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. ENROLLED 1997 Legislature CS/CS/HB 81 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 taxes under such 13 sections; providing that the proceeds of the 14 ninth-cent tax on fuel shall be used for 15 transportation expenditures as defined by s. 16 336.025(7), F.S.; revising provisions relating 17 to the distribution of local option taxes on 18 diesel fuel; providing for deduction of service 19 and administrative charges and dealer 20 allowances; providing for an additional 21 distribution to counties with a qualified new 22 retail station and providing requirements with 23 respect thereto; providing for distribution of 24 any additional available taxes based on each 25 county's vehicular diesel fuel storage 26 capacities and providing requirements with 27 respect thereto; revising provisions which 28 require that the local option tax of up to 5 29 cents on motor fuel be used for transportation 30 expenditures necessary to meet requirements of 31 3 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 the capital improvements element of an adopted 2 comprehensive plan; providing effective dates. 3 4 Be It Enacted by the Legislature of the State of Florida: 5 6 Section 1. Subsection (29) of section 206.01, Florida 7 Statutes, 1996 Supplement, is amended to read: 8 206.01 Definitions.--As used in this chapter: 9 (29) "Reseller" means any person who purchases in the 10 state tax-paid fuel from a terminal supplier or wholesaler and 11 who is authorized by the terminal supplier or wholesaler to 12 resell such fuel to retail dealers or end users only. 13 Section 2. Subsection (1) of section 206.026, Florida 14 Statutes, as amended by chapter 95-417, Laws of Florida, is 15 amended to read: 16 206.026 Certain persons prohibited from holding a 17 terminal supplier, importer, exporter, blender, carrier, 18 terminal operator, or wholesaler license; suspension and 19 revocation.-- 20 (1) No corporation, except a publicly held corporation 21 regularly traded on a national securities exchange and not 22 over the counter, general or limited partnership, sole 23 proprietorship, business trust, joint venture or 24 unincorporated association, or other business entity shall 25 hold a terminal supplier, importer, exporter, blender, 26 carrier, terminal operator, or wholesaler license in this 27 state if any one of the persons or entities specified in 28 paragraph (a) has been determined by the department not to be 29 of good moral character or has been convicted of any offense 30 specified in paragraph (b): 31 (a)1. The licenseholder. 4 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 2. The sole proprietor of the licenseholder. 2 3. A corporate officer or director of the 3 licenseholder. 4 4. A general or limited partner of the licenseholder. 5 5. A trustee of the licenseholder. 6 6. A member of an unincorporated association 7 licenseholder. 8 7. A joint venturer of the licenseholder. 9 8. The owner of any equity interest in the 10 licenseholder, whether as a common shareholder, general or 11 limited partner, voting trustee, or trust beneficiary. 12 9. An owner of any interest in the license or 13 licenseholder, including any immediate family member of the 14 owner, or holder of any debt, mortgage, contract, or 15 concession from the licenseholder, who by virtue thereof is 16 able to control the business of the licenseholder. 17 (b)1. A felony in this state. 18 2. Any felony in any other state which would be a 19 felony if committed in this state under the laws of Florida. 20 3. Any felony under the laws of the United States. 21 Section 3. Subsection (2) of section 206.27, Florida 22 Statutes, 1996 Supplement, is amended to read: 23 206.27 Records and files as public records.-- 24 (2) Nothing herein shall be construed as requiring the 25 department to provide as a public record any information 26 concerning audits in progress or those records and files of 27 the department described in this section which are currently 28 the subject of pending investigation by the Department of 29 Revenue or the Florida Department of Law Enforcement. It is 30 specifically provided that the foregoing information shall be 31 exempt from the provisions of s. 119.07(1) and shall be 5 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 considered confidential pursuant to s. 213.053; however, the 2 department may make available to the executive director of the 3 Department of Highway Safety and Motor Vehicles or his or her 4 designee, exclusively for official purposes in administering 5 chapter 207, any information concerning any audit in progress, 6 and the provisions of s. 213.053(7) requiring a written 7 agreement and maintenance of confidentiality by the recipient, 8 and the penalty for breach of confidentiality, shall apply if 9 the department makes such information available. Any officer, 10 employee, or former officer or employee of the department who 11 divulges any such information in any manner except for such 12 official purposes or under s. 213.053 is guilty of a 13 misdemeanor of the first degree, punishable as provided in s. 14 775.082 or s. 775.083. 15 Section 4. Paragraphs (b), (e), and (f) of subsection 16 (5) of section 206.41, Florida Statutes, 1996 Supplement, are 17 amended to read: 18 206.41 State taxes imposed on motor fuel.-- 19 (5) 20 (b)1. When motor fuel or diesel fuel is sold to a 21 person who claims to be entitled to a refund under subsection 22 (4), the seller of such motor fuel or diesel fuel shall make 23 out a sales invoice, which shall contain the following 24 information: 25 a. The name, post office address, and residence 26 address of the purchaser. 27 b. The number of gallons purchased. 28 c. The date on which the purchase was made. 29 d. The price paid for the motor fuel or diesel fuel. 30 e. The name and place of business of the seller of the 31 motor fuel or diesel fuel. 6 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 f. The license number, or other identification number, 2 of the motor vehicle or boat of the purchaser. 3 g. The Department of Environmental Protection storage 4 tank facility identification number for the seller's location, 5 if the location is required to be registered in accordance 6 with s. 376.303. 7 2. The sales invoice shall be retained by the 8 purchaser until the department's power to issue an assessment 9 with respect to such tax has terminated pursuant to s. 10 95.091(3) for attachment to his or her application for a 11 refund, as a part thereof. In lieu of original sales invoices, 12 a purchaser may submit a detailed schedule of individual 13 transactions which includes the information required by 14 subparagraph 1. along with the refund application. No refund 15 will be allowed unless the seller has executed such an invoice 16 and unless proof of payment of the taxes for which the refund 17 is claimed can be provided to the department upon request is 18 attached. The department may refuse to grant a refund in 19 whole or in part if the schedule or an invoice is incomplete 20 and fails to contain the full information required in this 21 paragraph. 22 3. No person may execute a sales invoice, as described 23 in subparagraph 1., except a terminal supplier, importer, 24 exporter, or wholesaler, reseller, or retail dealer or a duly 25 authorized agent thereof. No refund invoice may be executed 26 for a purchase from a retail service station. 27 4. When motor fuel or diesel fuel is sold by a retail 28 dealer to a person who claims to be entitled to a refund under 29 subsection (4), a detailed schedule of individual purchase 30 transactions including names, addresses, Department of 31 Environmental Protection storage tank facility identification 7 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 number of the station, date of purchase, invoice number, and 2 number of gallons purchased may be provided the department by 3 the permitted refund applicant in lieu of the original 4 invoices. Notwithstanding provisions of this paragraph to the 5 contrary, the department has authority to designate certain 6 retail service stations as agents of terminal suppliers, 7 importers, exporters, or wholesalers when no terminal 8 suppliers, importers, exporters, or wholesalers are available. 9 5. Notwithstanding provisions of this paragraph to the 10 contrary, refunds to a school district for fuel consumed by 11 school buses operated for the district by private contractors 12 shall be based on an estimate of taxes paid. The estimate 13 shall be determined quarterly by dividing the total miles 14 traveled by such vehicles for school purposes by their average 15 miles per gallon, as determined by the department, and 16 multiplying the result by the applicable tax rate per gallon. 17 It is the responsibility of the school district to provide 18 information relevant to this determination. 19 (e)1. Each terminal supplier, importer, blender, 20 exporter, or wholesaler shall, in accordance with the 21 requirements of the department, keep at his or her principal 22 place of business in this state or at the bulk plant where the 23 sale is made a complete record of or duplicate sales tickets 24 for all motor fuel or diesel fuel sold by him or her for which 25 a refund provided in this section may be claimed, which 26 records must give the date of each such sale, the number of 27 gallons sold, the name of the person to whom sold, and the 28 sale price. A terminal supplier, importer, blender, exporter, 29 or wholesaler, or his or her agent or employee, may not 30 acknowledge or assist in the preparation of any false or 31 fraudulent claim for tax refund. Any terminal supplier, 8 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 importer, blender, exporter, or wholesaler, or his or her 2 agent or employee, that has knowledge or should have had 3 knowledge that a refund is false or fraudulent shall in 4 addition to other penalties be jointly liable with the refund 5 recipient to the state for the tax improperly refunded. 6 2. Every person to whom a refund permit has been 7 issued under this subsection shall, in accordance with the 8 requirements of the department, keep at his or her residence 9 or principal place of business in this state a record of each 10 purchase of motor fuel or diesel fuel from a terminal 11 supplier, importer, blender, exporter, or wholesaler, or his 12 or her authorized agent; the number of gallons purchased; the 13 name of the seller; the date of the purchase; and the sale 14 price. 15 3. The records required to be kept under this 16 paragraph are subject, at all reasonable hours, to audit or 17 inspection by the department or by any person duly authorized 18 by the department. Such records shall be preserved and may not 19 be destroyed until the period specified in s. 215.26(2) has 20 elapsed. 21 4. The department shall keep a permanent record of the 22 amount of refund claimed and paid to each claimant. Such 23 records are open to public inspection. 24 (f) Agents of the department are authorized to go upon 25 the premises of any permitholder or terminal supplier, 26 importer, blender, exporter, or wholesaler, or duly authorized 27 agent thereof, to make inspection to ascertain any matter 28 connected with the operation of this subsection or the 29 enforcement hereof. However, no agent may enter the dwelling 30 of any person without the consent of the occupant or authority 31 from a court of competent jurisdiction. 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 Section 5. Section 206.413, Florida Statutes, is 2 created to read: 3 206.413 Liability for tax; interstate agreement; 4 penalties.-- 5 (1) The person liable for payment of the taxes imposed 6 by s. 206.41 shall be as follows: 7 (a) Every position holder shall pay taxes on the 8 removal of motor fuel from a terminal as described by s. 9 206.41. In an exchange agreement between two licensed 10 terminal suppliers, the receiving party shall be liable as the 11 position holder if the receiving party is identified to the 12 terminal operator by the delivering party. 13 (b) Every terminal supplier shall pay taxes on the 14 removal of motor fuel from a refinery as specified by s. 15 206.41. 16 (c) Every importer shall pay taxes on the entry into 17 this state as specified by s. 206.41. 18 (d) Any person that produces blended motor fuel 19 outside the bulk transfer or terminal system shall pay taxes 20 as provided for by s. 206.41. 21 (e) Any person using motor fuel upon which the tax 22 required by s. 206.41 has not been paid and which is not 23 exempted by this part is liable for the backup tax imposed by 24 s. 206.873. 25 (f) The seller of motor fuel is jointly and severally 26 liable for the backup tax imposed by s. 206.873 if the seller 27 knows or has reason to know that the motor fuel will be used 28 in any nonexempt use. 29 (g) The terminal operator is jointly and severally 30 liable for the taxes imposed by s. 206.41 if: 31 10 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 1. The position holder with respect to the motor fuel 2 is a person other than the terminal operator and is not a 3 terminal supplier; or 4 2. The terminal operator has not met the conditions 5 specified under paragraph (h). 6 (h) A terminal operator is not liable for taxes 7 imposed by s. 206.41 if at the time of the removal all the 8 following apply: 9 1. The terminal operator is a terminal supplier. 10 2. The terminal operator has an unexpired notification 11 certificate from the position holder as required by the 12 Internal Revenue Service. 13 3. The terminal operator has no reason to believe that 14 any information in the certificate is false. 15 (2) A licensed terminal supplier who is a position 16 holder in a terminal located outside of this state or a seller 17 transferring ownership of motor fuel outside of this state 18 destined for this state agrees to be subject to the laws of 19 this state and comply with the provisions of this chapter in 20 the same manner as if the motor fuel were withdrawn from a 21 terminal in this state or the transfer of ownership occurred 22 in this state. 23 (3)(a) Any person who willfully evades or attempts to 24 evade or defeat the payment of the fuel taxes imposed by this 25 part shall be penalized in the amount of $10 for every gallon 26 of motor fuel involved or $1,000, whichever is greater, for 27 the first offense. The penalty shall increase with subsequent 28 violations by multiplying the penalty amount by the number of 29 prior violations. The penalty applies in any of the following 30 circumstances: 31 11 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 1. If any motor fuel is sold or held for sale by any 2 person for any use that is taxable and such person knows or 3 has reason to know that the taxes due under this part have not 4 been paid to the state, and that person fails to pay the taxes 5 due directly to the state. 6 2. If any motor fuel is held for use or used by any 7 person for a use other than a nontaxable use and such person 8 knew, or had reason to know, that the taxes due under this 9 part have not been paid to the state, and that person fails to 10 pay the taxes due directly to the state. 11 3. If any person willfully, with intent to evade tax, 12 alters sales or shipping documents or collects and fails to 13 remit any taxes due under this part. 14 (b) Any business entity and each officer, employee, or 15 agent of the entity who willfully participated in any act 16 giving rise to the penalty is jointly and severally liable 17 with the entity for the penalty. 18 Section 6. Subsection (1) of section 206.414, Florida 19 Statutes, is amended to read: 20 206.414 Collection of certain taxes; prohibited 21 credits and refunds.-- 22 (1) The taxes imposed by s. 206.41(1)(d), (e), and (f) 23 shall be collected and remitted by licensed wholesalers and 24 terminal suppliers upon each sale, delivery, or consignment to 25 retail dealers, resellers, and end users. 26 Section 7. Paragraph (a) of subsection (1) of section 27 206.43, Florida Statutes, 1996 Supplement, is amended to read: 28 206.43 Terminal supplier, importer, exporter, blender, 29 and wholesaler to report to department monthly; 30 deduction.--The taxes levied and assessed as provided in this 31 12 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 part shall be paid to the department monthly in the following 2 manner: 3 (1)(a) Taxes are due on the first day of the 4 succeeding month and shall be paid on or before the 20th day 5 of each month. The terminal supplier, importer, exporter, 6 blender, or wholesaler shall mail to the department verified 7 reports on forms prescribed by the department and shall at the 8 same time pay to the department the amount of tax computed to 9 be due. However, if the 20th day falls on a Saturday, a 10 Sunday, or a federal or state legal holiday, returns shall be 11 accepted if postmarked on the next succeeding workday. The 12 terminal supplier or importer shall deduct from the amount of 13 tax shown by the report to be payable an amount equivalent to 14 .2 percent of the tax on motor fuels imposed by s. 15 206.41(1)(a), (b), (c), and (g), which deduction is hereby 16 allowed to the terminal supplier or importer on account of 17 services and expenses in complying with the provisions of the 18 law. The allowance on taxable gallons of motor fuel sold to 19 persons licensed under this chapter shall not be deductible 20 unless the terminal supplier or importer has allowed 50 21 percent of the allowance provided by this section to a the 22 licensed purchaser with a valid wholesaler or terminal 23 supplier license. However, this allowance shall not be 24 deductible unless payment of the tax is made on or before the 25 20th day of the month as herein required. The United States 26 post office date stamped on the envelope in which the report 27 is submitted shall be considered as the date the report is 28 received by the department. Nothing in this subsection shall 29 be construed to authorize a deduction from the constitutional 30 fuel tax or fuel sales tax. 31 13 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 Section 8. Subsection (1) of section 206.44, Florida 2 Statutes, as amended by chapter 95-417, Laws of Florida, is 3 amended to read: 4 206.44 Penalty and interest for failure to report on 5 time; penalty and interest on tax deficiencies.-- 6 (1) If any person terminal supplier, importer, 7 exporter, or wholesaler fails to make a report or pay the 8 taxes due as required by this chapter, the department shall 9 add a penalty in the amount of 10 percent of any unpaid tax if 10 the failure is for not more than 1 month, with an additional 11 10 percent of any unpaid tax for each additional month or 12 fraction thereof during which the failure continues. However, 13 such penalty may not exceed 50 percent in the aggregate of any 14 unpaid tax. Furthermore, in no event may the penalty assessed 15 be less than $10. The department shall collect the tax, 16 together with the penalty and costs, in the same manner as 17 other delinquent taxes are collected. 18 Section 9. Paragraph (m) is added to subsection (3) of 19 section 206.874, Florida Statutes, 1996 Supplement, to read: 20 206.874 Exemptions.-- 21 (3) Dyed diesel fuel may be purchased and used only 22 for the following purposes: 23 (m) Use by a noncommercial vessel. 24 Section 10. Subsection (1) of section 206.8745, 25 Florida Statutes, 1996 Supplement, is amended, and subsection 26 (7) is added to said section, to read: 27 206.8745 Credits and refund claims.-- 28 (1) Except as provided in subsections subsection (2) 29 and (7), any person who purchases undyed, tax-paid diesel fuel 30 who has paid the tax imposed by this part to the seller may 31 file a claim for refund of such taxes paid as provided in s. 14 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 215.26 if the fuel is used for an exempt purpose identified in 2 s. 206.874(3). 3 (7) Any person who purchases undyed diesel fuel for 4 use by a noncommercial vessel who has paid the tax imposed by 5 this part to the seller may claim a refund of such taxes paid 6 subject to the following restrictions: 7 (a) The purchaser may make one claim for refund per 8 calender year. 9 (b) The annual refund claim shall be submitted prior 10 to April 1 of the year subsequent to the year in which the tax 11 was paid. 12 (c) No refund shall be allowed on purchases of less 13 than 2,500 gallons per calendar year. 14 (d) The purchaser shall submit, with the refund 15 request, original purchase invoices showing the taxes paid. 16 (e) The purchaser shall remit as an offset to the 17 refund the sales tax due under chapter 212 based on the 18 purchase price of the fuel net of the state tax refunded. 19 Section 11. Subsection (1) of section 206.91, Florida 20 Statutes, as amended by chapter 95-417, Laws of Florida, is 21 amended to read: 22 206.91 Tax reports; computation and payment of tax.-- 23 (1) For the purpose of determining the amount of taxes 24 imposed by s. 206.87, each diesel fuel registrant shall, not 25 later than the 20th day of each calendar month, mail to the 26 department, on forms prescribed by the department, monthly 27 reports which shall show such information on inventories, 28 purchases, nontaxable disposals, and taxable sales in gallons 29 of diesel fuel and alternative fuel, for the preceding 30 calendar month as may be required by the department. However, 31 if the 20th day falls on a Saturday, a Sunday, or a federal or 15 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 state legal holiday, returns shall be accepted if postmarked 2 on the next succeeding workday. The reports shall contain or 3 be verified by a written declaration that such report is made 4 under the penalties of perjury. The diesel fuel registrant 5 shall deduct from the amount of taxes shown by the report to 6 be payable an amount equivalent to .67 percent of the taxes on 7 diesel fuel imposed by s. 206.87(1)(a) and (e), which 8 deduction is hereby allowed to the diesel fuel registrant on 9 account of services and expenses in complying with the 10 provisions of this part. The allowance on taxable gallons of 11 diesel fuel sold to persons licensed under this chapter shall 12 not be deductible unless the diesel fuel registrant has 13 allowed 50 percent of the allowance provided by this section 14 to a the licensed purchaser with a valid wholesaler or 15 terminal supplier license. This allowance shall not be 16 deductible unless payment of the taxes is made on or before 17 the 20th day of the month as herein required. Nothing in this 18 subsection shall be construed to authorize a deduction from 19 the constitutional fuel tax or fuel sales tax. 20 Section 12. Paragraph (m) is added to subsection (1) 21 of section 212.05, Florida Statutes, 1996 Supplement, to read: 22 212.05 Sales, storage, use tax.--It is hereby declared 23 to be the legislative intent that every person is exercising a 24 taxable privilege who engages in the business of selling 25 tangible personal property at retail in this state, including 26 the business of making mail order sales, or who rents or 27 furnishes any of the things or services taxable under this 28 chapter, or who stores for use or consumption in this state 29 any item or article of tangible personal property as defined 30 herein and who leases or rents such property within the state. 31 16 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 (1) For the exercise of such privilege, a tax is 2 levied on each taxable transaction or incident, which tax is 3 due and payable as follows: 4 (m) At the rate of 6 percent of the sales price of 5 each gallon of diesel fuel not taxed under chapter 206 6 purchased for use in a vessel. 7 Section 13. Section 212.0501, Florida Statutes, is 8 amended to read: 9 212.0501 Tax on diesel fuel for business purposes; 10 purchase, storage, and use.-- 11 (1) It is declared to be the legislative intent that 12 every person is exercising a taxable privilege who purchases 13 any diesel fuel as defined in chapter 206 for use by that 14 person in a trade or business. 15 (2) Each person who purchases diesel fuel for 16 consumption, use, or storage by a trade or business shall 17 register as a dealer and remit a use tax, at the rate of 6 18 percent, on the total cost price of diesel fuel consumed. 19 (3) For purposes of this section, "consumption, use, 20 or storage by a trade or business" does not include those uses 21 of diesel fuel specifically exempt on account of residential 22 purposes, or on account of agricultural purposes as defined in 23 s. 212.08(5), or the purchase or storage of diesel fuel held 24 for resale. 25 (4) Except as otherwise provided in s. 212.05(1)(m), a 26 No licensed sales tax dealer may elect shall be required to 27 collect such tax pursuant to this chapter on all sales to each 28 any person who purchases diesel fuel for consumption, use, or 29 storage by a trade or business. When the licensed sales tax 30 dealer has not elected to collect such tax on all such sales, 31 17 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 the purchaser or ultimate consumer shall be liable for the 2 payment of tax directly to the state. 3 (5) Diesel fuel upon which the fuel taxes pursuant to 4 chapter 206 have been paid is exempt from the tax imposed by 5 this chapter. Liquefied petroleum gas or other fuel used to 6 heat a structure in which started pullets or broilers are 7 raised is exempt from the tax imposed by this chapter; 8 however, such exemption shall not be allowed unless the 9 purchaser or lessee signs a certificate stating that the fuel 10 to be exempted is for the exclusive use designated herein. 11 (6) All taxes required to be paid on fuel used in 12 self-propelled off-road equipment shall be deposited in the 13 Fuel Tax Collection Trust Fund, to be distributed, after 14 deduction of the general revenue service charge pursuant to s. 15 215.20, to the State Transportation Trust Fund. The 16 department shall, each month, make a transfer, from general 17 revenue collections, equal to such use tax reported on 18 dealers' sales and use tax returns. 19 Section 14. Paragraph (b) of subsection (9) of section 20 212.08, Florida Statutes, 1996 Supplement, is amended to read: 21 212.08 Sales, rental, use, consumption, distribution, 22 and storage tax; specified exemptions.--The sale at retail, 23 the rental, the use, the consumption, the distribution, and 24 the storage to be used or consumed in this state of the 25 following are hereby specifically exempt from the tax imposed 26 by this part. 27 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES 28 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.-- 29 (b) Motor vehicles which are engaged in interstate 30 commerce as common carriers, and parts thereof, used to 31 transport persons or property in interstate or foreign 18 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 commerce are subject to tax imposed in this chapter only to 2 the extent provided herein. The basis of the tax shall be the 3 ratio of intrastate mileage to interstate or foreign mileage 4 traveled by the carrier's motor vehicles which were used in 5 interstate or foreign commerce and which had at least some 6 Florida mileage during the previous fiscal year of the 7 carrier. Such ratio is to be determined at the close of the 8 carrier's fiscal year. This ratio shall be applied each month 9 to the total purchases of such motor vehicles and parts 10 thereof which are used in this state to establish that portion 11 of the total used and consumed in intrastate movement and 12 subject to tax under this part. Motor vehicles which are 13 engaged in interstate commerce, and parts thereof, used to 14 transport persons or property in interstate and foreign 15 commerce are hereby determined to be susceptible to a distinct 16 and separate classification for taxation under the provisions 17 of this part. Motor vehicles and parts thereof used 18 exclusively in intrastate commerce do not qualify for the 19 proration of tax. For purposes of this paragraph, parts of a 20 motor vehicle engaged in interstate commerce include a 21 separate tank not connected to the fuel supply system of the 22 motor vehicle into which diesel fuel is placed to operate a 23 refrigeration unit or other equipment. 24 Section 15. Subsections (1) and (5) of section 25 336.021, Florida Statutes, 1996 Supplement, are amended to 26 read: 27 336.021 County transportation system; levy of 28 ninth-cent fuel tax on motor fuel and diesel fuel.-- 29 (1)(a) Any county in the state, by extraordinary vote 30 of the membership of its governing body or subject to a 31 referendum, may levy the tax imposed by ss. 206.41(1)(d) and 19 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 206.87(1)(b) for the purpose of paying the costs and expenses 2 of establishing, operating, and maintaining a transportation 3 system and related facilities and the cost of acquisition, 4 construction, reconstruction, and maintenance of roads and 5 streets. County and municipal governments may use the moneys 6 received under this paragraph only for transportation 7 expenditures as defined in s. 336.025(7). 8 (b) The governing body of the county may, by joint 9 agreement with one or more of the municipalities located 10 therein, provide for the transportation purposes authorized 11 under paragraph (a) and the distribution of the proceeds of 12 this tax within both the unincorporated and incorporated areas 13 of the county. The provisions for refund provided in ss. 14 206.625 and 206.64 shall not be applicable to such tax levied 15 by any county. 16 (c) Local option taxes collected on sales or use of 17 diesel fuel in this state shall be distributed in the 18 following manner: 19 1. The fiscal year of July 1, 1995, through June 30, 20 1996, shall be the base year for all distributions. 21 2. Each year the tax collected, less the service and 22 administrative charges enumerated in s. 215.20 and the 23 allowances allowed under s. 206.91, on the number of gallons 24 reported, up to the total number of gallons reported in the 25 base year, shall be distributed to each county using the 26 distribution percentage calculated for the base year. 27 3. After the distribution of taxes pursuant to 28 subparagraph 2., additional taxes available for distribution 29 shall first be distributed pursuant to this subparagraph. A 30 distribution shall be made to each county in which a qualified 31 new retail station is located. A qualified new retail station 20 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 is a retail station that began operation after June 30, 1996, 2 and that has sales of diesel fuel exceeding 50 percent of the 3 sales of diesel fuel reported in the county in which it is 4 located during the 1995-1996 state fiscal year. The 5 determination of whether a new retail station is qualified 6 shall be based on the total gallons of diesel fuel sold at the 7 station during each full month of operation during the 8 12-month period ending March 31, divided by the number of full 9 months of operation during those 12 months, and the result 10 multiplied by 12. The amount distributed pursuant to this 11 subparagraph to each county in which a qualified new retail 12 station is located shall equal the local option taxes due on 13 the gallons of diesel fuel sold by the new retail station 14 during the year ending March 31, less the service charges 15 enumerated in s. 215.20 and the dealer allowance provided for 16 by s. 206.91. Gallons of diesel fuel sold at the qualified new 17 retail station shall be certified to the department by the 18 county requesting the additional distribution by June 15, 19 1997, and by May 1 in each subsequent year. The certification 20 shall include the beginning inventory, fuel purchases and 21 sales, and the ending inventory for the new retail station for 22 each month of operation during the year, the original purchase 23 invoices for the period, and any other information the 24 department deems reasonable and necessary to establish the 25 certified gallons. The department may review and audit the 26 retail dealer's records provided to a county to establish the 27 gallons sold by the new retail station. Notwithstanding the 28 provisions of this subparagraph, when more than one county 29 qualifies for a distribution pursuant to this subparagraph and 30 the requested distributions exceed the total taxes available 31 for distribution, each county shall receive a prorated share 21 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 of the moneys available for distribution. Additional gallons 2 reported shall be distributed using a formula, the numerator 3 of which shall be the number of truck stops located in the 4 county, and the denominator of which shall be the number of 5 truck stops located within the state. For the purposes of this 6 section, a "truck stop" is any retail dealer registered 7 pursuant to chapter 212, excluding marinas, that has declared 8 its primary fuel business to be the sale of diesel fuel. 9 4. After the distribution of taxes pursuant to 10 subparagraph 3., all additional taxes available for 11 distribution shall be distributed based on vehicular diesel 12 fuel storage capacities in each county pursuant to this 13 subparagraph. The total vehicular diesel fuel storage capacity 14 shall be established for each fiscal year based on the 15 registration of facilities with the Department of 16 Environmental Protection as required by s. 376.303 for the 17 following facility types: retail stations, fuel 18 user/nonretail, state government, local government, and county 19 government. Each county shall receive a share of the total 20 taxes available for distribution pursuant to this subparagraph 21 equal to a fraction, the numerator of which is the storage 22 capacity located within the county for vehicular diesel fuel 23 in the facility types listed in this subparagraph and the 24 denominator of which is the total statewide storage capacity 25 for vehicular diesel fuel in those facility types. The 26 vehicular diesel fuel storage capacity for each county and 27 facility type shall be that established by the Department of 28 Environmental Protection by June 1, 1997, for the 1996-1997 29 fiscal year, and by January 31 for each succeeding fiscal 30 year. The storage capacities so established shall be final. 31 The storage capacity for any new retail station for which a 22 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 county receives a distribution pursuant to subparagraph 3. 2 shall not be included in the calculations pursuant to this 3 subparagraph. 4 (d) The tax on motor fuel shall be distributed monthly 5 by the department to the county reported by the terminal 6 suppliers and importers for retail sale or use. The tax on 7 diesel fuel shall be distributed monthly by the department to 8 each county as provided in paragraph (c). 9 (5) The tax shall be imposed before November 1, 1993, 10 to be effective January 1, 1994, and before July 1 of each 11 year thereafter to be effective January 1 of the following 12 year. However, levies of the tax which were in effect on July 13 1, 1996, and which expire on August 31 of any year may be 14 reimposed effective September 1 of the year of expiration. No 15 decision to rescind the tax shall take effect until at least 16 60 days after the county notifies the department of such 17 decision. 18 Section 16. Effective July 1, 1999, paragraph (a) of 19 subsection (2) of section 336.021, Florida Statutes, 1996 20 Supplement, as amended by section 17 of chapter 96-397, Laws 21 of Florida, is amended to read: 22 336.021 County transportation system; levy of 23 ninth-cent fuel tax on motor fuel and diesel fuel.-- 24 (2)(a) The tax collected by the department pursuant to 25 subsection (1) shall be transferred to the Ninth-cent Fuel Tax 26 Trust Fund, which fund is created for distribution to the 27 counties pursuant to paragraph (1)(d). The department shall 28 deduct the administrative costs incurred by it in collecting, 29 administering, enforcing, and distributing back to the 30 counties the tax, which administrative costs may not exceed 2 31 percent of collections authorized by this section. The total 23 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 administrative cost shall be prorated among those counties 2 levying the tax according to the following formula, which 3 shall be revised on July 1 of each year: Two-thirds of the 4 amount deducted shall be based on the county's proportional 5 share of the number of dealers taxpayers who are registered 6 for purposes of chapter 212 and required to file tax returns 7 on June 30th of the preceding state fiscal year, and one-third 8 of the amount deducted shall be based on the county's share of 9 the total amount of the tax collected during the preceding 10 state fiscal year. The department has the authority to 11 prescribe and publish all forms upon which reports shall be 12 made to it and other forms and records deemed to be necessary 13 for proper administration and collection of the tax levied by 14 any county and shall adopt rules necessary to enforce this 15 section, which rules shall have the full force and effect of 16 law. The provisions of ss. 206.026, 206.027, 206.028, 206.051, 17 206.052, 206.054, 206.055, 206.06, 206.07, 206.075, 206.08, 18 206.09, 206.095, 206.10, 206.11, 206.12, 206.13, 206.14, 19 206.15, 206.16, 206.17, 206.175, 206.18, 206.199, 206.20, 20 206.204, 206.205, 206.21, 206.215, 206.22, 206.24, 206.27, 21 206.28, 206.41, 206.416, 206.44, 206.45, 206.48, 206.49, 22 206.56, 206.59, 206.626, 206.87, 206.872, 206.873, 206.8735, 23 206.874, 206.8741, 206.8745, 206.94, and 206.945 shall, as far 24 as practicable, be applicable to the levy and collection of 25 the tax imposed pursuant to this section as if fully set out 26 in this section. 27 Section 17. Paragraphs (a) and (b) of subsection (1) 28 of section 336.025, Florida Statutes, 1996 Supplement, are 29 amended to read: 30 336.025 County transportation system; levy of local 31 option fuel tax on motor fuel and diesel fuel.-- 24 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 (1)(a) In addition to other taxes allowed by law, 2 there may be levied as provided in ss. 206.41(1)(e) and 3 206.87(1)(c) a 1-cent, 2-cent, 3-cent, 4-cent, 5-cent, or 4 6-cent local option fuel tax upon every gallon of motor fuel 5 and diesel fuel sold in a county and taxed under the 6 provisions of part I or part II of chapter 206. 7 1. The tax shall be levied before July 1 to be 8 effective January 1 of the following year for a period not to 9 exceed 30 years, and the applicable method of distribution 10 shall be established pursuant to subsection (3) or subsection 11 (4). However, levies of the tax which were in effect on July 12 1, 1996, and which expire on August 31 of any year may be 13 reimposed effective September 1 of the year of expiration. 14 Upon expiration, the tax may be relevied provided that a 15 redetermination of the method of distribution is made as 16 provided in this section. 17 2. County and municipal governments shall utilize 18 moneys received pursuant to this paragraph only for 19 transportation expenditures. 20 3. Any tax levied pursuant to this paragraph may be 21 extended on a majority vote of the governing body of the 22 county. A redetermination of the method of distribution shall 23 be established pursuant to subsection (3) or subsection (4), 24 if, after July 1, 1986, the tax is extended or the tax rate 25 changed, for the period of extension or for the additional 26 tax. 27 (b) In addition to other taxes allowed by law, there 28 may be levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent, 29 3-cent, 4-cent, or 5-cent local option fuel tax upon every 30 gallon of motor fuel sold in a county and taxed under the 31 provisions of part I of chapter 206. The tax shall be levied 25 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 by an ordinance adopted by a majority plus one vote of the 2 membership of the governing body of the county or by 3 referendum. 4 1. The tax shall be levied before July 1, to be 5 effective January 1 of the following year. However, levies of 6 the tax which were in effect on July 1, 1996, and which expire 7 on August 31 of any year may be reimposed effective September 8 1 of the year of expiration. 9 2. The county may, prior to levy of the tax, establish 10 by interlocal agreement with one or more municipalities 11 located therein, representing a majority of the population of 12 the incorporated area within the county, a distribution 13 formula for dividing the entire proceeds of the tax among 14 county government and all eligible municipalities within the 15 county. If no interlocal agreement is adopted before the 16 effective date of the tax, tax revenues shall be distributed 17 pursuant to the provisions of subsection (4). If no 18 interlocal agreement exists, a new interlocal agreement may be 19 established prior to June 1 of any year pursuant to this 20 subparagraph. However, any interlocal agreement agreed to 21 under this subparagraph after the initial levy of the tax or 22 change in the tax rate authorized in this section shall under 23 no circumstances materially or adversely affect the rights of 24 holders of outstanding bonds which are backed by taxes 25 authorized by this paragraph, and the amounts distributed to 26 the county government and each municipality shall not be 27 reduced below the amount necessary for the payment of 28 principal and interest and reserves for principal and interest 29 as required under the covenants of any bond resolution 30 outstanding on the date of establishment of the new interlocal 31 agreement. 26 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 3. County and municipal governments shall utilize 2 moneys received pursuant to this paragraph only for 3 transportation expenditures needed to meet the requirements of 4 the capital improvements element of an adopted comprehensive 5 plan. For purposes of this paragraph, expenditures for the 6 construction of new roads, or the reconstruction or 7 resurfacing of existing paved roads, shall be deemed to 8 increase capacity and such projects shall be included in the 9 capital improvements element of an adopted comprehensive plan. 10 Expenditures for purposes of this paragraph shall not include 11 routine maintenance of roads. 12 Section 18. Effective July 1, 1999, paragraph (a) of 13 subsection (2) of section 336.025, Florida Statutes, 1996 14 Supplement, as amended by section 19 of chapter 96-397, Laws 15 of Florida, is amended to read: 16 336.025 County transportation system; levy of local 17 option fuel tax on motor fuel and diesel fuel.-- 18 (2)(a) The tax levied pursuant to paragraph (1)(a) 19 shall be collected and remitted in the same manner provided by 20 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to 21 paragraph (1)(b) shall be collected and remitted in the same 22 manner provided by s. 206.41(1)(e). The taxes remitted 23 pursuant to this section shall be transferred to the Local 24 Option Fuel Tax Trust Fund, which fund is created for 25 distribution to the county and eligible municipal governments 26 within the county in which the tax was collected and which 27 fund is subject to the service charge imposed in chapter 215. 28 The tax shall be distributed monthly by the department in the 29 same manner provided by s. 336.021(1)(c) and (d). The 30 department shall deduct the administrative costs incurred by 31 it in collecting, administering, enforcing, and distributing 27 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 1997 Legislature CS/CS/HB 81 1 back to the counties the tax, which administrative costs may 2 not exceed 2 percent of collections authorized by this 3 section. The total administrative costs shall be prorated 4 among those counties levying the tax according to the 5 following formula, which shall be revised on July 1 of each 6 year: Two-thirds of the amount deducted shall be based on the 7 county's proportional share of the number of dealers taxpayers 8 who are registered for purposes of chapter 212 and required to 9 file tax returns on June 30 of the preceding state fiscal 10 year, and one-third of the amount deducted shall be based on 11 the county's share of the total amount of the tax collected 12 during the preceding state fiscal year. The department has the 13 authority to prescribe and publish all forms upon which 14 reports shall be made to it and other forms and records deemed 15 to be necessary for proper administration and collection of 16 the taxes levied by any county and shall promulgate such rules 17 as may be necessary for the enforcement of this section, which 18 rules shall have the full force and effect of law. The 19 provisions of ss. 206.026, 206.027, 206.028, 206.051, 206.052, 20 206.054, 206.055, 206.06, 206.07, 206.075, 206.08, 206.09, 21 206.095, 206.10, 206.11, 206.12, 206.13, 206.14, 206.15, 22 206.16, 206.17, 206.175, 206.18, 206.199, 206.20, 206.204, 23 206.205, 206.21, 206.215, 206.22, 206.24, 206.27, 206.28, 24 206.41, 206.416, 206.44, 206.45, 206.48, 206.49, 206.56, 25 206.59, 206.626, 206.87, 206.872, 206.873, 206.8735, 206.874, 26 206.8741, 206.94, and 206.945 shall, as far as practicable, be 27 applicable to the levy and collection of taxes imposed 28 pursuant to this section as if fully set out in this section. 29 Section 19. Except as otherwise provided herein, this 30 act shall take effect upon becoming a law. 31 28