House Bill 0027

    Florida House of Representatives - 1999                  HB 27

        By Representative Starks






  1                      A bill to be entitled

  2         An act relating to intangible personal property

  3         taxes; amending s. 199.185, F.S.; increasing

  4         the percentage of accounts receivable that is

  5         exempt from said taxes; retaining legislative

  6         intent to exempt all accounts receivable on a

  7         future date; providing an effective date.

  8

  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  Paragraph (l) of subsection (1) of section

12  199.185, Florida Statutes, 1998 Supplement, is amended to

13  read:

14         199.185  Property exempted from annual and nonrecurring

15  taxes.--

16         (1)  The following intangible personal property shall

17  be exempt from the annual and nonrecurring taxes imposed by

18  this chapter:

19         (l)  Two-thirds One-third of the accounts receivable

20  arising or acquired in the ordinary course of a trade or

21  business which are owned, controlled, or managed by a taxpayer

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

23  the Legislature that, pursuant to future legislative action,

24  the portion of such accounts receivable exempt from taxation

25  be increased to two-thirds for taxes levied on January 1,

26  2000, and further increased to all such accounts receivable on

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

28  to accounts receivable which arise outside the taxpayer's

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

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

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

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






    Florida House of Representatives - 1999                  HB 27

    204-194-99






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

  2  not supported by negotiable instruments. Accounts receivable

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

  4  charge card receivables, credit receivables, margin

  5  receivables, inventory or other floor plan financing, lease

  6  payments past due, conditional sales contracts, retail

  7  installment sales agreements, financing lease contracts, and a

  8  claim against a debtor usually arising from sales or services

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

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

11  supported by negotiable instruments. The term "negotiable

12  instrument" means a written document that is legally capable

13  of being transferred by indorsement or delivery. The term

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

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

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

17  whereby the property is assigned and transferred to another.

18         Section 2.  This act shall take effect January 1, 2000.

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20            *****************************************

21                          HOUSE SUMMARY

22
      Implements legislative intent that the second one-third
23    of accounts receivable become exempt from intangible
      personal property taxes on January 1, 2000. Present law
24    exempts one-third on January 1, 1999, and expresses the
      intent that all accounts receivable be exempt beginning
25    January 1, 2001.

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