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





                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Cosgrove, Wasserman Schultz, Bloom, Bush,

12  and Brown offered the following:

13

14         Amendment (with title amendment) 

15         On page 1, line 27

16  remove from the bill:  everything after the enacting clause

17

18  and insert in lieu thereof:

19         Section 1.    Section 199.185, Florida Statutes, is

20  amended to read:

21         199.185  Property exempted from annual and nonrecurring

22  taxes.--

23         (1)  The following intangible personal property shall

24  be exempt from the annual and nonrecurring taxes imposed by

25  this chapter:

26         (a)  Money.

27         (b)  Franchises.

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

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

30  partner in a limited partnership registered with the

31  Securities and Exchange Commission pursuant to the Securities

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  Act of 1933, as amended.

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

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

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

 5  agencies.

 6         (e)  Intangible personal property held in trust

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

 8  or any individual retirement account which is qualified under

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

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

11  as amended.

12         (f)  Intangible personal property held under a

13  retirement plan of a Florida-based corporation exempt from

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

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

16  the corporation is to support the promotion of professional

17  sports and the retirement plan is either a qualified plan

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

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

20  States Internal Revenue Service, are not taxable to plan

21  participants until actual receipt or withdrawal by the

22  participant.

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

24  extent that such notes and obligations are secured by

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

26  situated outside the state.

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

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

29  amended.

30         (i)  All intangible personal property issued in or

31  arising out of any international banking transaction and owned

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  by a banking organization.

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

 3  an agreement or declaration of trust and registered under the

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

 5  assets consists solely of assets exempt under this section.

 6         (k)  Interests in real estate securitizations,

 7  including, but not limited to, real estate mortgage investment

 8  conduits (REMIC) and financial asset securitization trusts

 9  (FASITS), which are directly or indirectly secured by or

10  payable from notes and obligations that are in turn secured

11  solely by a mortgage, deed of trust, or other lien upon real

12  property situated in or outside the state, including, but not

13  limited to, mortgage pools, participations, and derivatives.

14         (l)  All One-third of the accounts receivable arising

15  or acquired in the ordinary course of a trade or business

16  which are owned, controlled, or managed by a taxpayer on

17  January 1, 2000 1999, and thereafter. It is the intent of the

18  Legislature that, pursuant to future legislative action, the

19  portion of such accounts receivable exempt from taxation be

20  increased to two-thirds for taxes levied on January 1, 2000,

21  and further increased to all such accounts receivable on

22  January 1, 2001, and thereafter. This exemption does not apply

23  to accounts receivable which arise outside the taxpayer's

24  ordinary course of trade or business. For the purposes of this

25  chapter, the term "accounts receivable" means a business debt

26  that is owed by another to the taxpayer or the taxpayer's

27  assignee in the ordinary course of trade or business and is

28  not supported by negotiable instruments. Accounts receivable

29  include, but are not limited to, credit card receivables,

30  charge card receivables, credit receivables, margin

31  receivables, inventory or other floor plan financing, lease

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  payments past due, conditional sales contracts, retail

 2  installment sales agreements, financing lease contracts, and a

 3  claim against a debtor usually arising from sales or services

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

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

 6  supported by negotiable instruments. The term "negotiable

 7  instrument" means a written document that is legally capable

 8  of being transferred by indorsement or delivery. The term

 9  "indorsement" means the act of a payee or holder in writing

10  his or her name on the back of an instrument without further

11  qualifying words other than "pay to the order of" or "pay to"

12  whereby the property is assigned and transferred to another.

13         (m)  Stock options granted to employees by their

14  employer pursuant to an incentive plan, if the employees

15  cannot transfer, sell, or mortgage the options. Stock

16  purchased by an employee from an employer pursuant to an

17  incentive plan shall be treated as a nontaxable stock option

18  if part of the purchase price of the stock is nonrecourse debt

19  secured by the stock and the stock cannot be sold,

20  transferred, or assigned by the employee until the nonrecourse

21  debt is discharged. Such stock becomes taxable stock when it

22  can be sold, transferred, or assigned by the employee.

23         (2)(a)  With respect to the first mill of the annual

24  tax, every natural person is entitled each year to an

25  exemption of the first $20,000 of the value of property

26  otherwise subject to said tax.  A husband and wife filing

27  jointly shall have an exemption of $40,000.

28         (b)  With respect to the last mill of the annual tax,

29  every natural person is entitled each year to an exemption of

30  the first $100,000 of the value of property otherwise subject

31  to said tax. A husband and wife filing jointly are entitled to

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  shall have an exemption of $200,000.  Every taxpayer that is

 2  not a natural person is entitled each year to an exemption of

 3  the first $100,000 of the value of property otherwise subject

 4  to the tax.

 5

 6  Agents and fiduciaries, other than guardians and custodians

 7  under a gifts-to-minors act, filing as such may not claim this

 8  exemption on behalf of their principals or beneficiaries;

 9  however, if the principal or beneficiary returns the property

10  held by the agent or fiduciary and is a natural person, the

11  principal or beneficiary may claim the exemption.  No taxpayer

12  shall be entitled to more than one exemption under this

13  subsection paragraph (a) and one exemption under paragraph

14  (b).  This exemption shall not apply to that intangible

15  personal property described in s. 199.023(1)(d).

16         (3)  Every natural person who is a widow or widower, or

17  who is blind, or who is totally and permanently disabled, is

18  entitled each year to an additional exemption of $500 of

19  property otherwise subject to the annual or nonrecurring tax.

20  This exemption is afforded by s. 3, Art. VII of the State

21  Constitution and is available only to the extent not used

22  against real property or tangible personal property taxes.

23         (4)  Charitable trusts, 95 percent of the income of

24  which is paid to organizations exempt from federal income tax

25  pursuant to s. 501(c)3 of the Internal Revenue Code, shall be

26  exempt from 1 mill of the tax imposed in s. 199.032.

27         (5)  Those organizations defined in s. 220.62(1), (2),

28  (3), or (4) are exempt from the tax imposed by s. 199.032.

29         (6)  Every liquor distributor that is domiciled in this

30  state, that is authorized to do business under the Beverage

31  Law, and that has paid the license taxes required by s.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  565.03(2) is exempt from paying tax on accounts receivable

 2  owned by the taxpayer which are derived from, arise out of, or

 3  are issued in connection with a sale of alcoholic beverages

 4  transacted in another state with a customer in another state.

 5         (6)(7)  A national bank that has its principal place of

 6  business in another state, processes credit card credit

 7  applications in this state or performs customer service or

 8  collection operations in this state, and is not a bank under

 9  12 U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on

10  credit card receivables owed to the bank by a credit card

11  holder domiciled outside this state.

12         (7)(8)  Every insurer, as defined in s. 624.03, whether

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

14  624.09, is exempt from the tax imposed by s. 199.032.

15         Section 2.    Subsection (3) of section 199.292,

16  Florida Statutes, is amended to read:

17         199.292  Disposition of intangible personal property

18  taxes.--All intangible personal property taxes collected

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

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

21  be disbursed as follows:

22         (3)  Of the remaining intangible personal property

23  taxes collected, an amount equal to 45.67 35.3 percent in

24  state fiscal year 1998-1999 and an amount equal to 37.7

25  percent in each year thereafter, shall be transferred to the

26  Revenue Sharing Trust Fund for Counties. Of the remaining

27  taxes collected, an amount equal to 54.33 64.7 percent in

28  state fiscal year 1998-1999 and an amount equal to 62.3

29  percent in each year thereafter, shall be transferred to the

30  General Revenue Fund of the state.

31         Section 3.    This act shall take effect July 1, 1999.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1943

    Amendment No.     (for drafter's use only)





 1  ================ T I T L E   A M E N D M E N T ===============

 2  And the title is amended as follows:

 3         On page 1, lines 3-23

 4  remove from the title of the bill:  all of said lines

 5

 6  and insert in lieu thereof:

 7         taxes; amending ss. 199.185, F.S.; exempting

 8         accounts receivable; increasing exemptions for

 9         taxpayers who are natural persons; creating

10         exemptions for taxpayers who are not natural

11         persons;  amending s. 199.292, F.S.; changing

12         distributions of tax proceeds to the General

13         Revenue Fund and the Revenue Sharing Trust Fund

14         for Counties; providing an effective date.

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