House Bill 1947
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Florida House of Representatives - 1999 HB 1947
By the Committee on Finance & Taxation and Representatives
Albright, Logan, Fasano and Brown
1 A bill to be entitled
2 An act relating to tax administration; amending
3 s. 212.11, F.S.; revising the filing deadline
4 applicable to sales tax dealers who are
5 required to calculate and pay estimated tax
6 liability; increasing the threshold for
7 determining whether a dealer is subject to said
8 requirement; amending ss. 212.04 and 212.15,
9 F.S., to conform; creating s. 213.235, F.S.;
10 providing for determination of the annual rate
11 of interest applicable to tax payment
12 deficiencies; creating s. 213.255, F.S.;
13 providing for payment of interest on
14 overpayments of taxes, payment of taxes not
15 due, or taxes paid in error with respect to
16 taxes administered by the Department of Revenue
17 if refund is not made within a specified
18 period; providing requirements for refund
19 applications and determination of completeness
20 thereof; requiring a bond or other security
21 under certain conditions; providing for
22 interest and penalties with respect to refunds
23 paid in error; providing application; providing
24 for rules; amending ss. 198.15 and 198.18,
25 F.S., relating to the rate of interest on
26 delinquent estate taxes and taxes for which an
27 extension is granted, s. 198.155, F.S.,
28 relating to the rate of interest on delinquent
29 tax on generation-skipping transfers, s.
30 198.16, F.S., relating to the rate of interest
31 on deficiencies in such taxes, s. 199.282,
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1 F.S., relating to the rate of interest on
2 delinquent intangible personal property taxes,
3 s. 201.17, F.S., relating to the rate of
4 interest on delinquent excise taxes on
5 documents, and s. 203.06, F.S., relating to the
6 rate of interest on delinquent gross receipts
7 taxes, to conform; reenacting s. 203.62, F.S.,
8 relating to the gross receipts tax on
9 interstate and international telecommunications
10 services, to incorporate the amendment to s.
11 203.06, F.S., in a reference thereto; amending
12 s. 206.44, F.S., relating to the rate of
13 interest on delinquent motor fuel taxes, to
14 conform; reenacting ss. 206.06(1), 206.94,
15 206.97, 206.9915(3), 336.021(2)(a), and
16 336.025(2)(a), F.S., relating to estimated fuel
17 taxes, tax on diesel fuel, tax on fuel and
18 other pollutants, the ninth-cent fuel tax on
19 motor and diesel fuel, and the local option tax
20 on motor and diesel fuel for county
21 transportation systems, to incorporate the
22 amendment to s. 206.44, F.S., in references
23 thereto; amending s. 207.007, F.S., relating to
24 the rate of interest on delinquent tax on the
25 operation of commercial motor vehicles, ss.
26 211.076 and 211.33, F.S., relating to the rate
27 of interest on delinquent taxes and
28 underpayment of estimated taxes on oil and gas
29 production and severance of minerals, and s.
30 212.12, F.S., relating to the rate of interest
31 on delinquent taxes on sales, use, and other
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1 transactions, to conform; reenacting ss.
2 193.501(6)(e), 193.503(9)(b), and 193.505(8),
3 F.S., relating to the interest on a deferred
4 tax liability due upon a change in assessment
5 status of certain conservation or recreation
6 land or historic properties, and s.
7 196.1997(7), F.S., relating to the interest on
8 taxes which become due when property is no
9 longer eligible for a historic property tax
10 exemption, to incorporate the amendment to s.
11 212.12, F.S., in references thereto; amending
12 s. 220.807, F.S., relating to the interest rate
13 applicable to the corporate income tax code,
14 and s. 624.5092, F.S., relating to the rate of
15 interest on delinquent insurance premium taxes,
16 to conform; directing the Department of Revenue
17 to examine and report on the impact of the act;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsections (1) and (4) of section 212.11,
23 Florida Statutes, 1998 Supplement, are amended to read:
24 212.11 Tax returns and regulations.--
25 (1)(a) Each dealer shall calculate his or her
26 estimated tax liability for any month by one of the following
27 methods:
28 1. Sixty-six percent of the current month's liability
29 pursuant to this chapter as shown on the tax return;
30 2. Sixty-six percent of the tax reported on the tax
31 return pursuant to this chapter by a dealer for the taxable
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1 transactions occurring during the corresponding month of the
2 preceding calendar year; or
3 3. Sixty-six percent of the average tax liability
4 pursuant to this chapter for those months during the preceding
5 calendar year in which the dealer reported taxable
6 transactions.
7 (b) For the purpose of ascertaining the amount of tax
8 payable under this chapter, it shall be the duty of all
9 dealers to file a return and remit the tax, on or before the
10 20th day of the month, or on or before the 28th day of the
11 month if the dealer is complying with paragraph (a), to the
12 department, upon forms prepared and furnished by it or in a
13 format prescribed by it. Such return must show the rentals,
14 admissions, gross sales, or purchases, as the case may be,
15 arising from all leases, rentals, admissions, sales, or
16 purchases taxable under this chapter during the preceding
17 calendar month.
18 (c) However, the department may require:
19 1. A quarterly return and payment when the tax
20 remitted by the dealer for the preceding four calendar
21 quarters did not exceed $1,000.
22 2. A semiannual return and payment when the tax
23 remitted by the dealer for the preceding four calendar
24 quarters did not exceed $500.
25 3. An annual return and payment when the tax remitted
26 by the dealer for the preceding four calendar quarters did not
27 exceed $100.
28 4. A quarterly return and monthly payment when the tax
29 remitted by the dealer for the preceding four calendar
30 quarters exceeded $1,000 but did not exceed $12,000.
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1 (d) The department may authorize dealers who are newly
2 required to file returns and pay tax quarterly to file returns
3 and remit the tax for the 3-month periods ending in February,
4 May, August, and November, and may authorize dealers who are
5 newly required to file returns and pay tax semiannually to
6 file returns and remit the tax for the 6-month periods ending
7 in May and November.
8 (e) The department shall accept returns, except those
9 required to be initiated through an electronic data
10 interchange, as timely if postmarked on or before the 20th day
11 of the month, or on or before the 28th day of the month if the
12 dealer is required to file under paragraph (a); if the filing
13 date deadline 20th day falls on a Saturday, Sunday, or federal
14 or state legal holiday, returns shall be accepted as timely if
15 postmarked on the next succeeding workday. Any dealer who
16 operates two or more places of business for which returns are
17 required to be filed with the department and maintains records
18 for such places of business in a central office or place shall
19 have the privilege on each reporting date of filing a
20 consolidated return for all such places of business in lieu of
21 separate returns for each such place of business; however,
22 such consolidated returns must clearly indicate the amounts
23 collected within each county of the state. Any dealer who
24 files a consolidated return shall calculate his or her
25 estimated tax liability for each county by the same method the
26 dealer uses to calculate his or her estimated tax liability on
27 the consolidated return as a whole. Each dealer shall file a
28 return for each tax period even though no tax is due for such
29 period.
30 (f)1. A taxpayer who is required to remit taxes by
31 electronic funds transfer shall make a return in a manner that
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1 is initiated through an electronic data interchange. The
2 acceptable method of transfer, the method, form, and content
3 of the electronic data interchange, giving due regard to
4 developing uniform standards for formats as adopted by the
5 American National Standards Institute, the circumstances under
6 which an electronic data interchange shall serve as a
7 substitute for the filing of another form of return, and the
8 means, if any, by which taxpayers will be provided with
9 acknowledgments, shall be as prescribed by the department. The
10 department must accept such returns as timely if initiated and
11 accepted on or before the 20th day of the month, or on or
12 before the 28th day of the month if the dealer is required to
13 file under paragraph (a). If the filing date deadline 20th day
14 falls on a Saturday, Sunday, or federal or state legal
15 holiday, returns must be accepted as timely if initiated and
16 accepted on the next succeeding workday.
17 2. The department may waive the requirement to make a
18 return through an electronic data interchange due to problems
19 arising from the taxpayer's computer capabilities, data
20 systems changes, and taxpayer operating procedures. To obtain
21 a waiver, the taxpayer shall demonstrate in writing to the
22 department that such circumstances exist.
23 (4)(a) Each dealer who is subject to the tax imposed
24 by this chapter and who paid such tax for the preceding state
25 fiscal year in an amount greater than or equal to $200,000
26 $100,000 shall calculate the amount of estimated tax due
27 pursuant to this section for any month as provided in
28 paragraph (1)(a).
29 (b) The amount of any estimated tax shall be due,
30 payable, and remitted by electronic funds transfer by the 28th
31 20th day of the month for which it is estimated. The
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1 difference between the amount of estimated tax paid and the
2 actual amount of tax due under this chapter for such month
3 shall be due and payable by the first day of the following
4 month and remitted by electronic funds transfer by the 28th
5 20th day thereof.
6 (c) Any dealer who is eligible to file a consolidated
7 return and who paid the tax imposed by this chapter for the
8 immediately preceding state fiscal year in an amount greater
9 than or equal to $200,000 $100,000 or would have paid the tax
10 in such amount if he or she had filed a consolidated return
11 shall be subject to the provisions of this subsection
12 notwithstanding an election by the dealer in any month to file
13 a separate return.
14 (d) A dealer engaged in the business of selling boats,
15 motor vehicles, or aircraft who made at least one sale of a
16 boat, motor vehicle, or aircraft with a sales price of
17 $200,000 $100,000 or greater in the previous state fiscal year
18 may qualify for payment of estimated sales tax pursuant to the
19 provisions of this paragraph. To qualify, a dealer must apply
20 annually to the department prior to October 1, and, if
21 qualified, the department must grant the application for
22 payment of estimated sales tax pursuant to this paragraph for
23 the following calendar year. In lieu of the method for
24 calculating estimated sales tax liability pursuant to
25 subparagraph (1)(a)3., a qualified dealer must calculate that
26 option as 66 percent of the average tax liability pursuant to
27 this chapter for all sales excluding the sale of each boat,
28 motor vehicle, or aircraft with a sales price of $200,000
29 $100,000 or greater during the state fiscal year ending the
30 year in which the application is made. A qualified dealer
31 must also remit the sales tax for each sale of a boat, motor
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1 vehicle, or aircraft with a sales price of $200,000 $100,000
2 or greater by either electronic funds transfer on the date of
3 the sale or on a form prescribed by the department and
4 postmarked on the date of the sale.
5 (e) The penalty provisions of this chapter, except s.
6 212.12(2)(c), apply to the provisions of this subsection.
7 Section 2. Subsection (4) of section 212.04, Florida
8 Statutes, 1998 Supplement, is amended to read:
9 212.04 Admissions tax; rate, procedure, enforcement.--
10 (4) Each person who exercises the privilege of
11 charging admission taxes, as herein defined, shall apply for,
12 and at that time shall furnish the information and comply with
13 the provisions of s. 212.18 not inconsistent herewith and
14 receive from the department, a certificate of right to
15 exercise such privilege, which certificate shall apply to each
16 place of business where such privilege is exercised and shall
17 be in the manner and form prescribed by the department. Such
18 certificate shall be issued upon payment to the department of
19 a registration fee of $5 by the applicant. Each person
20 exercising the privilege of charging such admission taxes as
21 herein defined shall cause to be kept records and accounts
22 showing the admission which shall be in the form as the
23 department may from time to time prescribe, inclusive of
24 records of all tickets numbered and issued for a period of not
25 less than the time within which the department may, as
26 permitted by s. 95.091(3), make an assessment with respect to
27 any admission evidenced by such records and accounts, and
28 inclusive of all bills or checks of customers who are charged
29 any of the taxes defined herein, showing the charge made to
30 each for that period. The department is empowered to use each
31 and every one of the powers granted herein to the department
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1 to discover the amount of tax to be paid by each such person
2 and to enforce the payment thereof as are hereby granted the
3 department for the discovery and enforcement of the payment of
4 taxes hereinafter levied on the sales of tangible personal
5 property. The failure of any person to pay such taxes before
6 the 21st day of the succeeding month after the taxes are
7 collected, except as otherwise provided in this chapter, shall
8 render such person liable to the same penalties that are
9 hereafter imposed upon such person for being delinquent in the
10 payment of taxes imposed upon the sales of tangible personal
11 property; the failure of any person to render returns and to
12 pay taxes as prescribed herein shall render such person
13 subject to the same penalties, by way of charges for
14 delinquencies, at the rate of 10 percent per month for a total
15 amount of tax delinquent up to a total of 50 percent of such
16 tax and at the rate of 100-percent penalty for attempted
17 evasion of payment of any such tax or for any attempt to file
18 false or misleading returns that are required to be filed by
19 the department.
20 Section 3. Subsection (1) of section 212.15, Florida
21 Statutes, is amended to read:
22 212.15 Taxes declared state funds; penalties for
23 failure to remit taxes; due and delinquent dates; judicial
24 review.--
25 (1) The taxes imposed by this chapter shall, except as
26 provided in s. 212.06(5)(a)2.e., become state funds at the
27 moment of collection and shall for each month be due to the
28 department on the first day of the succeeding month and be
29 delinquent on the 21st day of such month, except as otherwise
30 provided in this chapter. All returns postmarked after the
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1 20th day of such month are delinquent, except as otherwise
2 provided in this chapter.
3 Section 4. Section 213.235, Florida Statutes, is
4 created to read:
5 213.235 Determination of interest on deficiencies.--
6 (1) The annual rate of interest applicable to tax
7 payment deficiencies shall be the adjusted rate established by
8 the executive director of the department under subsection (2).
9 This annual rate of interest is applicable to all taxes
10 enumerated in s. 213.05 unless otherwise provided.
11 (2) If the adjusted prime rate charged by banks,
12 rounded to the nearest full percent, during either:
13 (a) The 6-month period ending on September 30 of any
14 calendar year; or
15 (b) The 6-month period ending on March 31 of any
16 calendar year,
17
18 differs from the interest rate in effect on such date, the
19 executive director of the department shall, within 20 days,
20 establish an adjusted rate of interest equal to such adjusted
21 prime rate.
22 (3) An adjusted rate of interest established under
23 this section shall become effective:
24 (a) On January 1 of the succeeding year, if based upon
25 the adjusted prime rate for the 6-month period ending on
26 September 30; or
27 (b) On July 1 of the same calendar year, if based upon
28 the adjusted prime rate for the 6-month period ending on March
29 31.
30 (4) For the purposes of this section, "adjusted prime
31 rate charged by banks" means the average predominant prime
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1 rate quoted by commercial banks to large businesses, as
2 determined by the Board of Governors of the Federal Reserve
3 System.
4 (5) Once established, an adjusted rate of interest
5 shall remain in effect until an adjustment is made under
6 subsection (2).
7 Section 5. Section 213.255, Florida Statutes, is
8 created to read:
9 213.255 Interest.--Interest shall be paid on
10 overpayments of taxes, payment of taxes not due, or taxes paid
11 in error, subject to the following conditions:
12 (1) A refund application must be filed with the
13 department within the time specified by s. 215.26.
14 (2) A refund application shall not be processed until
15 it is determined complete. A refund application is complete
16 if it is filed on a permitted form and contains:
17 (a) The taxpayer's name, address, identifying number,
18 and signature.
19 (b) Sufficient information, whether on the application
20 or attachments, to permit mathematical verification of the
21 amount of the refund.
22 (c) The amount claimed.
23 (d) The specific grounds upon which the refund is
24 claimed.
25 (e) The taxable years or periods involved.
26 (3) Within 30 days after receipt of the refund
27 application, the department shall examine the application and
28 notify the applicant of any apparent errors or omissions and
29 request any additional information the department is permitted
30 by law to require. An application shall be considered
31 complete upon receipt of all requested information and
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1 correction of any error or omission for which the applicant
2 was timely notified, or when the time for such notification
3 has expired, whichever is later.
4 (4) Interest shall not commence until 90 days after a
5 complete refund application has been filed and the amount of
6 overpayment has not been refunded to the taxpayer or applied
7 as a credit to the taxpayer's account. If the department and
8 the taxpayer mutually agree that an audit or verification is
9 necessary in order to determine the taxpayer's entitlement to
10 the refund, interest shall not commence until the audit or
11 verification of the claim is final.
12 (5) If a tax is adjudicated unconstitutional and
13 refunds are ordered by the court, interest shall not commence
14 on complete applications until 90 days after the adjudication
15 becomes final and unappealable or 90 days after a complete
16 application has been filed, whichever is later.
17 (6) Interest shall be paid until a date determined by
18 the department which shall be no more than 7 days prior to the
19 date of the issuance of the refund warrant by the Comptroller.
20 (7) If the department intends to pay a refund claim
21 prior to completion of an audit, the department may condition
22 its payment of the refund claim upon the person filing a cash
23 bond or surety bond in the amount of the refund claimed or
24 making such other security arrangements satisfactory to
25 protect the state's interests. The department may impose this
26 condition only when it has reasonable cause to believe that it
27 could not recover the amount of any refund paid in error from
28 the person claiming the refund. The cash or surety bond shall
29 be endorsed by a surety company authorized to do business in
30 this state and shall be conditioned upon payment in full of
31 the amount of any refund paid in error for any reason. The
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1 department shall provide a written notice of its determination
2 that a cash or surety bond is required as a condition of
3 payment prior to audit, in which event interest shall not
4 commence until the person filing the claim satisfies this
5 requirement. Such bond shall remain in place while the
6 department retains a right pursuant to s. 95.091(3) to audit
7 the refund claim. Upon completion of an audit of the claim,
8 the department shall agree to a reduction in the bond amount
9 equal to the portion of the refund claim approved by the
10 department.
11 (8) Nothing in this section is intended to alter the
12 department's right to audit or verify refund claims either
13 before or after they are paid.
14 (9) In the event that the department pays a refund
15 claim that is later determined to have been paid in error, the
16 person to whom the refund was paid shall be assessed interest
17 on the amount of the erroneous refund payment, commencing with
18 the date of the erroneous payment and continuing until the
19 erroneous payment amount is repaid to the department. If the
20 department determines that the erroneous refund claim was not
21 due to reasonable cause, there shall be added a penalty in the
22 amount of 10 percent of the erroneously refunded tax. If the
23 department determines that the erroneous refund claim was due
24 to fraud, there shall be added a penalty in the amount of 100
25 percent of the erroneously refunded tax.
26 (10) The provisions of this section shall apply with
27 regard to refund claims filed on or after July 1, 1999, and
28 beginning July 1, 2000, shall apply with regard to any then
29 pending refund claims that were filed with the department
30 prior to July 1, 1999.
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1 (11) The department is authorized to adopt such rules,
2 not inconsistent with the provisions of this section, as are
3 necessary for the implemention of this section including, but
4 not limited to, rules establishing the information necessary
5 for a complete refund application, the procedures for denying
6 an incomplete application, and the standards and guidelines to
7 be applied in determining when to require a bond under the
8 provisions of subsection (7).
9 (12) The rate of interest shall be the adjusted rate
10 established pursuant to s. 213.235, except that the annual
11 rate of interest shall never be greater than 11 percent. This
12 annual rate of interest shall be applied to all refunds of
13 taxes administered by the department except for corporate
14 income taxes and emergency excise taxes governed by ss.
15 220.721 and 220.723.
16 Section 6. Subsection (1) of section 198.15, Florida
17 Statutes, is amended to read:
18 198.15 When tax due; extension; interest; penalty.--
19 (1) The tax imposed by this chapter is due and payable
20 on or before the last day prescribed by law for paying the
21 federal estate tax pursuant to the initial estate tax return
22 and shall be paid by the personal representative to the
23 department. The department shall extend the time for payment
24 of the tax or any part of the tax if the time for paying the
25 federal estate tax is extended, provided the personal
26 representative files with the department a copy of the
27 approved federal extension notice within 30 days after
28 receiving such notice. No extension shall be for more than 1
29 year, and the aggregate of extensions with respect to any
30 estate shall not exceed 10 years from the due date. In such
31 case, the amount in respect of which the extension is granted
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1 shall be paid on or before the date of the expiration of the
2 period of the extension, unless a further extension is
3 granted. If the time for the payment is thus extended, there
4 shall be collected, as part of such amount, interest thereon
5 at the adjusted rate established pursuant to s. 213.235 of 1
6 percent per month of the amount due from the due date of the
7 tax to the date the same is paid.
8 Section 7. Subsection (5) of section 198.155, Florida
9 Statutes, is amended to read:
10 198.155 Payment of tax on generation-skipping
11 transfers.--
12 (5) If the tax, or any portion thereof, is not paid
13 before it becomes delinquent, it shall bear interest from the
14 due date until paid at the adjusted rate established pursuant
15 to s. 213.235 of 1 percent per month for each month or
16 fraction thereof that it is delinquent.
17 Section 8. Subsection (3) of section 198.16, Florida
18 Statutes, is amended to read:
19 198.16 Notice of determination of deficiency in
20 federal tax to be filed with department.--
21 (3) If, based upon any deficiency and the ground
22 therefor, it shall appear that the amount of tax previously
23 paid is less than the amount of tax owing, the difference,
24 together with interest at the adjusted rate established
25 pursuant to s. 213.235 of 1 percent per month from the due
26 date of the tax, shall be paid upon notice and demand by the
27 department. In the event the personal representative or person
28 required to return and pay such tax shall fail to give the
29 notice required by this section, any additional tax which
30 shall be owing may be assessed, or a proceeding in court for
31 the collection of such tax may be begun without assessment at
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1 any time prior to the filing of such notice or within 30 days
2 after the delinquent filing of such notice, notwithstanding
3 the provisions of s. 198.28.
4 Section 9. Subsection (2) of section 198.18, Florida
5 Statutes, is amended to read:
6 198.18 Failure to pay tax; penalties; delinquent or
7 deficient taxes, interest.--
8 (2) Any deficiency in tax or any tax payment not
9 received by the department on or before the due date as
10 provided in s. 198.15, in addition to any other penalties,
11 shall bear interest at the adjusted rate established pursuant
12 to s. 213.235 of 1 percent per month of the amount due from
13 the due date until paid. The department may settle or
14 compromise such interest pursuant to s. 213.21.
15 Section 10. Subsection (2) of section 199.282, Florida
16 Statutes, 1998 Supplement, is amended to read:
17 199.282 Penalties for violation of this chapter.--
18 (2) If any annual or nonrecurring tax is not paid by
19 the statutory due date, then despite any extension granted
20 under s. 199.232(6), interest shall run on the unpaid balance
21 from such due date until paid at the adjusted rate established
22 pursuant to s. 213.235 of 12 percent per year.
23 Section 11. Paragraph (c) of subsection (2) of section
24 201.17, Florida Statutes, is amended to read:
25 201.17 Penalties for failure to pay tax required.--
26 (2) If any document, instrument, or paper upon which
27 the tax under this chapter is imposed, upon audit or at time
28 of recordation, does not show the proper amount of tax paid,
29 or if the tax imposed by this chapter on any document,
30 instrument, or paper is not timely reported and paid as
31 required by s. 201.133, the person or persons liable for the
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1 tax upon the document, instrument, or paper shall be subject
2 to:
3 (c) Payment of interest to the Department of Revenue,
4 accruing from the date the tax is due until paid, at the
5 adjusted rate established pursuant to s. 213.235 of 1 percent
6 per month, based on the amount of tax not paid.
7 Section 12. Section 203.06, Florida Statutes, is
8 amended to read:
9 203.06 Interest on delinquent payments.--Any payments
10 as imposed in this chapter, if not received by the Department
11 of Revenue on or before the due date as provided by law, shall
12 include, as an additional part of such amount due, interest at
13 the adjusted rate established pursuant to s. 213.235 of 1
14 percent per month, accruing from the date due until paid.
15 Section 13. For the purpose of incorporating the
16 amendment to section 203.06, Florida Statutes, in a reference
17 thereto, section 203.62, Florida Statutes, is reenacted to
18 read:
19 203.62 Applicability of specified sections of part
20 I.--The provisions of ss. 203.01, 203.012, 203.013, 203.02,
21 203.03, 203.04, 203.06, and 203.07 shall be applicable to the
22 levy and collection of taxes imposed pursuant to this part as
23 if fully set out in this part.
24 Section 14. Subsection (2) of section 206.44, Florida
25 Statutes, is amended to read:
26 206.44 Penalty and interest for failure to report on
27 time; penalty and interest on tax deficiencies.--
28 (2) Any payment that is not received by the department
29 on or before the due date as provided in s. 206.43 shall bear
30 interest at the adjusted rate established pursuant to s.
31 213.235 of 1 percent per month, from the date due until paid.
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1 Interest on any delinquent tax shall be calculated beginning
2 on the 21st day of the month for which the tax is due, except
3 as otherwise provided in this part.
4 Section 15. For the purpose of incorporating the
5 amendment to section 206.44, Florida Statutes, in a reference
6 thereto, subsection (1) of section 206.06, Florida Statutes,
7 is reenacted to read:
8 206.06 Estimate of amount of fuel taxes due and
9 unpaid.--
10 (1) Whenever any terminal supplier, importer,
11 exporter, or wholesaler neglects or refuses to make and file
12 any report for any calendar month, as required by the fuel tax
13 laws of this state, or files an incorrect or fraudulent
14 report, or is in default in the payment of any fuel taxes and
15 penalties thereon payable under the laws of this state, the
16 department shall, from any information it may be able to
17 obtain from its office or elsewhere, estimate the number of
18 gallons of motor fuel with respect to which the terminal
19 supplier, importer, exporter, or wholesaler has become liable
20 for taxes under the fuel tax laws of this state and the amount
21 of taxes due and payable thereon, to which sum shall be added
22 a penalty and interest as provided in s. 206.44.
23 Section 16. For the purpose of incorporating the
24 amendment to section 206.44, Florida Statutes, in a reference
25 thereto, section 206.94, Florida Statutes, is reenacted to
26 read:
27 206.94 Department may estimate diesel fuels sold or
28 used.--When any person neglects or refuses to file any report
29 as required by s. 206.91 or files an incorrect or fraudulent
30 report, the department shall determine, after investigation,
31 the number of gallons of diesel fuels with respect to which
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1 the person has incurred liability under this part for any
2 particular period and fix the amount of taxes due and payable
3 thereon, to which taxes due shall be added the penalties and
4 interest imposed by s. 206.44 as a penalty for the default of
5 such person. The department may settle or compromise such
6 penalties pursuant to s. 213.21.
7 Section 17. For the purpose of incorporating the
8 amendment to section 206.44, Florida Statutes, in a reference
9 thereto, section 206.97, Florida Statutes, is reenacted to
10 read:
11 206.97 Applicability of specified sections of part
12 I.--The provisions of ss. 206.01, 206.02, 206.026, 206.027,
13 206.028, 206.04, 206.051, 206.052, 206.054, 206.055, 206.07,
14 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12,
15 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,
16 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,
17 206.23, 206.24, 206.25, 206.27, 206.28, 206.41, 206.415,
18 206.416, 206.43, 206.435, 206.44, 206.48, 206.49, 206.56,
19 206.59, 206.606, 206.608, 206.61, and 206.62 of part I of this
20 chapter shall, as far as lawful or practicable, be applicable
21 to the tax herein levied and imposed and to the collection
22 thereof as if fully set out in this part. However, no
23 provision of any such section shall apply if it conflicts with
24 any provision of this part.
25 Section 18. For the purpose of incorporating the
26 amendment to section 206.44, Florida Statutes, in a reference
27 thereto, subsection (3) of section 206.9915, Florida Statutes,
28 is reenacted to read:
29 206.9915 Legislative intent and general provisions.--
30 (3) The provisions of ss. 206.01, 206.02, 206.026,
31 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06,
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1 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11,
2 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175,
3 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215,
4 206.22, 206.24, 206.27, 206.28, 206.416, 206.42, 206.425,
5 206.44, 206.48, 206.49, 206.56, 206.59, 206.86, 206.87,
6 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.8745,
7 206.94, 206.945, and 206.9815 shall, as far as lawful or
8 practicable, be applicable to the levy and collection of taxes
9 imposed pursuant to this part as if fully set out in this part
10 and made expressly applicable to the taxes imposed herein.
11 Section 19. For the purpose of incorporating the
12 amendment to section 206.44, Florida Statutes, in a reference
13 thereto, paragraph (a) of subsection (2) of section 336.021,
14 Florida Statutes, as amended by section 16 of chapter 97-54,
15 Laws of Florida, is reenacted to read:
16 336.021 County transportation system; levy of
17 ninth-cent fuel tax on motor fuel and diesel fuel.--
18 (2)(a) The tax collected by the department pursuant to
19 subsection (1) shall be transferred to the Ninth-cent Fuel Tax
20 Trust Fund, which fund is created for distribution to the
21 counties pursuant to paragraph (1)(d). The department shall
22 deduct the administrative costs incurred by it in collecting,
23 administering, enforcing, and distributing back to the
24 counties the tax, which administrative costs may not exceed 2
25 percent of collections authorized by this section. The total
26 administrative cost shall be prorated among those counties
27 levying the tax according to the following formula, which
28 shall be revised on July 1 of each year: Two-thirds of the
29 amount deducted shall be based on the county's proportional
30 share of the number of dealers who are registered for purposes
31 of chapter 212 on June 30th of the preceding state fiscal
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1 year, and one-third of the amount deducted shall be based on
2 the county's share of the total amount of the tax collected
3 during the preceding state fiscal year. The department has the
4 authority to prescribe and publish all forms upon which
5 reports shall be made to it and other forms and records deemed
6 to be necessary for proper administration and collection of
7 the tax levied by any county and shall adopt rules necessary
8 to enforce this section, which rules shall have the full force
9 and effect of law. The provisions of ss. 206.026, 206.027,
10 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 206.07,
11 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12,
12 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,
13 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,
14 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.45,
15 206.48, 206.49, 206.56, 206.59, 206.626, 206.87, 206.872,
16 206.873, 206.8735, 206.874, 206.8741, 206.8745, 206.94, and
17 206.945 shall, as far as practicable, be applicable to the
18 levy and collection of the tax imposed pursuant to this
19 section as if fully set out in this section.
20 Section 20. For the purpose of incorporating the
21 amendment to section 206.44, Florida Statutes, in a reference
22 thereto, paragraph (a) of subsection (2) of section 336.025,
23 Florida Statutes, as amended by section 18 of chapter 97-54,
24 Laws of Florida, is reenacted 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
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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 who are
17 registered for purposes of chapter 212 on June 30 of the
18 preceding state fiscal year, and one-third of the amount
19 deducted shall be based on the county's share of the total
20 amount of the tax collected during the preceding state fiscal
21 year. The department has the authority to prescribe and
22 publish all forms upon which reports shall be made to it and
23 other forms and records deemed to be necessary for proper
24 administration and collection of the taxes levied by any
25 county and shall promulgate such rules as may be necessary for
26 the enforcement of this section, which rules shall have the
27 full force and effect of law. The provisions of ss. 206.026,
28 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06,
29 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11,
30 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175,
31 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215,
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1 206.22, 206.24, 206.27, 206.28, 206.41, 206.416, 206.44,
2 206.45, 206.48, 206.49, 206.56, 206.59, 206.626, 206.87,
3 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.94, and
4 206.945 shall, as far as practicable, be applicable to the
5 levy and collection of taxes imposed pursuant to this section
6 as if fully set out in this section.
7 Section 21. Subsection (2) of section 207.007, Florida
8 Statutes, is amended to read:
9 207.007 Offenses; penalties and interest.--
10 (2) In addition to any other penalties, any delinquent
11 tax shall bear interest at the adjusted rate established
12 pursuant to s. 213.235 of 1 percent per month, or fraction
13 thereof, calculated from the date the tax was due. If the
14 department enters into a cooperative reciprocal agreement
15 under the provisions of s. 207.0281, the department shall
16 collect and distribute all interest due to other jurisdictions
17 at the same rate as if such interest were due to the state.
18 Section 22. Subsection (1) and paragraph (a) of
19 subsection (4) of section 211.076, Florida Statutes, are
20 amended to read:
21 211.076 Interest and penalties; failure to pay tax or
22 file return; estimated tax underpayments.--
23 (1) If any part of the tax imposed by this part is not
24 paid on or before the due date, interest shall be added to the
25 amount due at the adjusted rate established pursuant to s.
26 213.235 of 12 percent per year from the due date until the
27 date of payment.
28 (4)(a) Except as provided in paragraph (c), the
29 taxpayer is liable for interest at the adjusted rate
30 established pursuant to s. 213.235 of 12 percent per year and
31 a penalty at the rate of 12 percent per year on any
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1 underpayment of estimated tax determined under this
2 subsection.
3 Section 23. Paragraph (f) of subsection (1) and
4 paragraph (d) of subsection (2) of section 211.33, Florida
5 Statutes, are amended to read:
6 211.33 Administration of the tax; returns; delinquency
7 penalties and interest; departmental inspections of records.--
8 (1)
9 (f) Except as provided in subparagraph 3., the
10 taxpayer shall be liable for interest at the adjusted rate
11 established pursuant to s. 213.235 of 12 percent per year and
12 for a penalty in an amount determined at the rate of 20
13 percent per year upon the amount of any underpayment of
14 estimated tax determined under this paragraph.
15 1. The amount of any underpayment of estimated tax
16 shall be the excess of:
17 a. The amount of the installment which would be
18 required to be paid if the estimated tax were equal to 80
19 percent of the tax shown on the return for the taxable year
20 or, if no return were filed, 80 percent of the tax for such
21 year, over
22 b. The amount, if any, of the installment paid on or
23 before the last date prescribed for payment.
24 2. The period of the underpayment for which interest
25 and penalties shall apply shall commence on the date the
26 installment was required to be paid and shall terminate on the
27 date on which the amount of underpayment is paid. A payment of
28 estimated tax on any installment date shall be considered a
29 payment of any previous underpayment only to the extent such
30 payment exceeds the amount of the installment determined under
31 sub-subparagraph 1.a. for such installment date.
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1 3. No penalty or interest for underpayment of any
2 installment of estimated tax shall be imposed if the total
3 amount of all such payments made on or before the last date
4 prescribed for the payment of such installment equals or
5 exceeds the amount which would have been required to be paid
6 on or before such date if the estimated tax were the lesser
7 of:
8 a. An amount equal to 80 percent of the tax finally
9 due for the taxable year; or
10 b. An amount equal to the tax shown on the taxpayer's
11 return for the preceding taxable year, if a return showing a
12 liability for tax was filed by the taxpayer for the preceding
13 year.
14 (2)
15 (d) In addition to the delinquency penalty provided in
16 paragraph (c), the department shall assess interest on the
17 unpaid balance of any such tax which becomes delinquent,
18 without regard to any extensions, at the adjusted rate
19 established pursuant to s. 213.235 of 12 percent per year,
20 from April 1 to the date of payment. Interest prescribed by
21 this paragraph shall be deemed assessed upon the assessment of
22 the tax and shall be collected and paid in the same manner.
23 Section 24. Subsection (3) of section 212.12, Florida
24 Statutes, 1998 Supplement, is amended to read:
25 212.12 Dealer's credit for collecting tax; penalties
26 for noncompliance; powers of Department of Revenue in dealing
27 with delinquents; brackets applicable to taxable transactions;
28 records required.--
29 (3) When any dealer, or other person charged herein,
30 fails to remit the tax, or any portion thereof, on or before
31 the day when such tax is required by law to be paid, there
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1 shall be added to the amount due interest on at the rate of 1
2 percent per month of the amount due from the date due until
3 paid at the adjusted rate established pursuant to s. 213.235.
4 Interest on the delinquent tax shall be calculated beginning
5 on the 21st day of the month following the month for which the
6 tax is due, except as otherwise provided in this chapter.
7 Section 25. For the purpose of incorporating the
8 amendment to section 212.12, Florida Statutes, 1998
9 Supplement, in a reference thereto, paragraph (e) of
10 subsection (6) of section 193.501, Florida Statutes, is
11 reenacted to read:
12 193.501 Assessment of lands subject to a conservation
13 easement, environmentally endangered lands, or lands used for
14 outdoor recreational or park purposes when land development
15 rights have been conveyed or conservation restrictions have
16 been covenanted.--
17 (6) The following terms whenever used as referred to
18 in this section have the following meanings unless a different
19 meaning is clearly indicated by the context:
20 (e) "Deferred tax liability" means an amount equal to
21 the difference between the total amount of taxes that would
22 have been due in March in each of the previous years in which
23 the conveyance or covenant was in effect if the property had
24 been assessed under the provisions of s. 193.011 and the total
25 amount of taxes actually paid in those years when the property
26 was assessed under the provisions of this section, plus
27 interest on that difference computed as provided in s.
28 212.12(3).
29 Section 26. For the purpose of incorporating the
30 amendment to section 212.12, Florida Statutes, 1998
31 Supplement, in a reference thereto, paragraph (b) of
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1 subsection (9) of section 193.503, Florida Statutes, is
2 reenacted to read:
3 193.503 Classification and assessment of historic
4 property used for commercial or certain nonprofit purposes.--
5 (9)
6 (b) For purposes of this subsection, "deferred tax
7 liability" means an amount equal to the difference between the
8 total amount of taxes that would have been due in March if the
9 property had been assessed under the provisions of s. 193.011
10 and the total amount of taxes actually paid in those years
11 when the property was assessed under the provisions of this
12 section, plus interest on that difference computed as provided
13 in s. 212.12(3).
14 Section 27. For the purpose of incorporating the
15 amendment to section 212.12, Florida Statutes, 1998
16 Supplement, in a reference thereto, subsection (8) of section
17 193.505, Florida Statutes, is reenacted to read:
18 193.505 Assessment of historically significant
19 property when development rights have been conveyed or
20 historic preservation restrictions have been covenanted.--
21 (8) For the purposes of this section, the term
22 "deferred tax liability" means an amount equal to the
23 difference between the total amount of taxes which would have
24 been due in March in each of the previous years in which a
25 covenant executed and accepted pursuant to this section was in
26 effect if the property had been assessed under the provisions
27 of s. 193.011 irrespective of any negative impact on fair
28 market value that restrictions imposed pursuant to this
29 section may have caused and the total amount of taxes actually
30 paid in those years, plus interest on that difference computed
31 as provided in s. 212.12(3).
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1 Section 28. For the purpose of incorporating the
2 amendment to section 212.12, Florida Statutes, 1998
3 Supplement, in a reference thereto, subsection (7) of section
4 196.1997, Florida Statutes, is reenacted to read:
5 196.1997 Ad valorem tax exemptions for historic
6 properties.--
7 (7) To qualify for an exemption, the property owner
8 must enter into a covenant or agreement with the governing
9 body for the term for which the exemption is granted. The
10 form of the covenant or agreement must be established by the
11 Department of State and must require that the character of the
12 property, and the qualifying improvements to the property, be
13 maintained during the period that the exemption is granted.
14 The covenant or agreement shall be binding on the current
15 property owner, transferees, and their heirs, successors, or
16 assigns. Violation of the covenant or agreement results in
17 the property owner being subject to the payment of the
18 differences between the total amount of taxes which would have
19 been due in March in each of the previous years in which the
20 covenant or agreement was in effect had the property not
21 received the exemption and the total amount of taxes actually
22 paid in those years, plus interest on the difference
23 calculated as provided in s. 212.12(3).
24 Section 29. Section 220.807, Florida Statutes, is
25 amended to read:
26 220.807 Determination of Rate of interest.--
27 (1) The annual rate of interest applicable to this
28 chapter shall be the adjusted rate established pursuant to s.
29 213.235 by the executive director of the Department of Revenue
30 under subsection (2).
31
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1 (2) If the adjusted prime rate charged by banks,
2 rounded to the nearest full percent, during either:
3 (a) The 6-month period ending on September 30 of any
4 calendar year; or
5 (b) The 6-month period ending on March 31 of any
6 calendar year,
7
8 differs from the interest rate in effect on either such date,
9 the executive director of the Department of Revenue shall,
10 within 20 days, establish an adjusted rate of interest equal
11 to such adjusted prime rate.
12 (3) An adjusted rate of interest established under
13 this section shall become effective:
14 (a) On January 1 of the succeeding year, if based upon
15 the adjusted prime rate for the 6-month period ending on
16 September 30; or
17 (b) On July 1 of the same calendar year, if based upon
18 the adjusted prime rate for the 6-month period ending on March
19 31.
20 (4) For the purposes of this section, "adjusted prime
21 rate charged by banks" means the average predominant prime
22 rate quoted by commercial banks to large business, as
23 determined by the Board of Governors of the Federal Reserve
24 System.
25 (5) Once established, an adjusted rate of interest
26 shall remain in effect until an adjustment is made under
27 subsection (2).
28 Section 30. Paragraph (c) of subsection (2) of section
29 624.5092, Florida Statutes, is amended to read:
30 624.5092 Administration of taxes; payments.--
31 (2)
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1 (c) When any taxpayer fails to pay any amount due
2 under this section, or any portion thereof, on or before the
3 day when such tax or installment of tax is required by law to
4 be paid, there shall be added to the amount due interest at
5 the adjusted rate established pursuant to s. 213.235 of 12
6 percent per year from the date due until paid.
7 Section 31. The Department of Revenue shall examine
8 the impact of this act and, by January 1, 2000, the executive
9 director of the Department of Revenue shall submit to the
10 Speaker of the House of Representatives, the President of the
11 Senate, and the chairs of the finance and taxation committees
12 of the Legislature a report containing recommendations for the
13 effective and efficient implementation of this act and methods
14 to minimize its fiscal impact. These may include ways to
15 increase voluntary compliance with the state's tax laws.
16 Section 32. This act shall take effect July 1, 1999.
17
18 *****************************************
19 HOUSE SUMMARY
20
Extends the filing deadline applicable to sales tax
21 dealers who are required to calculate and pay estimated
tax liability from the 20th to the 28th day of the month.
22 Increases the threshold for determing whether a dealer is
subject to said requirement from $100,000 to $200,000.
23
24 Provides that the annual rate of interest on tax payment
deficiencies shall be a floating rate based on the prime
25 rate.
26
Provides for payment of interest on overpayments of taxes
27 administered by the Department of Revenue if refund is
not made within a specified period. Provides
28 requirements for refund applications.
29
Directs the Department of Revenue to examine and report
30 on the impact of the act.
31
30