Senate Bill 0318

    Florida Senate - 1999                                   SB 318

    By Senator Lee





    8-101-99

  1                      A bill to be entitled

  2         An act relating to intangible property taxes;

  3         amending s. 199.185, F.S.; prescribing the

  4         amount of accounts receivable subject to the

  5         tax as of January 1, 2000; providing an

  6         effective date.

  7

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

  9

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

11  199.185, Florida Statutes, 1998 Supplement, is amended to

12  read:

13         199.185  Property exempted from annual and nonrecurring

14  taxes.--

15         (1)  The following intangible personal property shall

16  be exempt from the annual and nonrecurring taxes imposed by

17  this chapter:

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

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

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

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

22  the Legislature that, pursuant to future legislative action,

23  the portion of such accounts receivable exempt from taxation

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

25  2000, and further increased to all such accounts receivable on

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

27  to accounts receivable that which arise outside the taxpayer's

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

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

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

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

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






    Florida Senate - 1999                                   SB 318
    8-101-99




  1  not supported by negotiable instruments. Accounts receivable

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

  3  charge card receivables, credit receivables, margin

  4  receivables, inventory or other floor plan financing, lease

  5  payments past due, conditional sales contracts, retail

  6  installment sales agreements, financing lease contracts, and a

  7  claim against a debtor usually arising from sales or services

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

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

10  supported by negotiable instruments. The term "negotiable

11  instrument" means a written document that is legally capable

12  of being transferred by indorsement or delivery. The term

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

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

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

16  whereby the property is assigned and transferred to another.

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

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19            *****************************************

20                          SENATE SUMMARY

21    Confirms the previously declared intent of the
      Legislature that two-thirds of accounts receivable
22    arising or acquired in the ordinary course of a trade or
      business be exempt from the tax on intangible personal
23    property as of January 1, 2000.

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